Fed Governor Lisa Cook asks court to confirm position in lawsuit against Trump

Washington DC - Federal Reserve Governor Lisa Cook filed a lawsuit Thursday to challenge Donald Trump's move to fire her from her position as the president intensified pressure on the independent central bank.

President Donald Trump's efforts to fire Fed Governor Lisa Cook are "unprecedented and illegal," a new lawsuit filed Thursday alleges.
President Donald Trump's efforts to fire Fed Governor Lisa Cook are "unprecedented and illegal," a new lawsuit filed Thursday alleges.  © Collage: REUTERS

"This case challenges President Trump's unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would (be) the first of its kind in the Board's history," court documents said.

Cook seeks a decision to confirm her status as a Fed governor, allowing her to continue in her responsibilities.

In requesting "immediate declaratory and injunctive relief," Cook also seeks an outcome safeguarding Fed officials' congressionally mandated independence.

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On Monday evening, Trump published a letter on his Truth Social platform stating that he had removed Cook from her role. He cited accusations of false statements on her mortgage agreements.

White House spokesman Kush Desai maintained in a statement Thursday that Trump had "determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions."

Among the alleged false statements was that Cook had claimed two primary residences, one in Michigan and another in Georgia.

Cook has not been charged with a crime and the alleged incidents took place before she was in her current position.

Trump's war on the Federal Reserve

Trump has consistently pressured Fed Chair Jerome Powell to slash interest rates, despite the central bank's independence.
Trump has consistently pressured Fed Chair Jerome Powell to slash interest rates, despite the central bank's independence.  © REUTERS

Trump's move marked a dramatic escalation in his effort to exert control over the Fed, in a step that could put the institution's independence at risk, according to analysts.

Cook's lawsuit stressed that Fed independence "is vital to its ability to make sound economic decisions, free from the political pressures of an election cycle."

For months, the US leader has been calling for the bank to slash interest rates, lashing out repeatedly at Fed Chair Jerome Powell for being "too late" and calling him a "moron."

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But policymakers had been holding rates steady as they monitored the effects that Trump's sweeping tariffs may have on consumer inflation.

By removing Cook, Trump could potentially add another voice to the Fed's board to try and shift interest rates in his favored direction.

A Fed spokesperson has earlier said that the central bank "will abide by any court decision.

By law, Fed officials can only be removed for "cause," which could be interpreted to mean malfeasance or dereliction of duty.

Cover photo: Collage: REUTERS

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