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Fed Governor Lisa Cook Sues to Block Trump’s Attempted Firing

The case could define the limits of presidential power over the Federal Reserve’s governors, with implications for the central bank’s independence.

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Lisa Cook, governor of the US Federal Reserve, during a Fed Listens event in Washington, DC, on March 22, 2024.
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Overview

  • Cook filed suit in Washington, D.C., seeking an injunction and a declaration that she remains a sitting governor under the Federal Reserve Act’s “for cause” removal protection.
  • A federal judge set a hearing for Friday morning and assigned the case to U.S. District Judge Jia M. Cobb.
  • The White House says Trump lawfully removed Cook for cause under 12 U.S.C. 242, while Cook argues unproven, pre-appointment mortgage allegations and lack of due process cannot satisfy that standard.
  • DOJ opened an investigation after FHFA Director Bill Pulte’s referral about Cook’s 2021 mortgages, but no charges have been filed.
  • A ruling could reshape the Fed board’s balance if a vacancy lets Trump name a replacement, and the Fed says it will abide by the courts’ decisions.