Fed Governor Lisa Cook Challenges Trump’s Attempted Removal in Court

Federal Reserve Governor Lisa Cook has filed a lawsuit against President Donald Trump, challenging what she calls an “unprecedented and unlawful” attempt to oust her from the central bank. Cook is also seeking an emergency order to keep her in her position while the court reviews the case.

In her filing, Cook argues that Trump’s August 25, 2025, “firing” is invalid, asking the court to affirm that she remains a sitting member of the Fed’s Board of Governors. She also requests a ruling that unproven claims of mortgage fraud, allegations made before her Senate confirmation, do not qualify as legal grounds for dismissal.

The effort to remove Cook came after Federal Housing Finance Authority Director Bill Pulte accused her of mortgage fraud on August 20. Cook, the first Black woman to serve on the Fed board, has not been charged with any crime. Trump’s letter only stated she “may have made false statements on one or more mortgage applications.”

Under the Federal Reserve Act, governors can only be removed “for cause,” which typically means inefficiency, neglect of duty, or misconduct while in office. Cook’s lawsuit stresses that Trump cited none of these, nor did his claims relate to her official duties.

The lawsuit also names the Fed Board of Governors and Chair Jerome Powell, arguing they must uphold lawful procedures regarding any removal. The Fed previously confirmed that Cook would challenge the action in court and said it would comply with whatever decision is reached.

Cook’s lawyers emphasize that an independent Fed is crucial for economic stability, preventing any White House from exploiting monetary policy for political gain. The suit warns that presidential interference, such as removing governors over disagreements, would undermine the Fed’s independence and risk destabilizing the economy.

Trump has repeatedly attacked Powell and the Fed, calling for lower interest rates and accusing officials of acting against him. Cook’s case notes these long-standing tensions, framing the attempted removal as part of a broader pressure campaign against the central bank.

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Source: Steve Kopack, NBC NEWS