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3h ago

Lisa Cook Sues to Block Trump’s Attempt to Fire Her From the Fed

The case tests the Fed’s for‑cause removal protections, signaling a fight over presidential control of an independent central bank.

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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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Bessent Slams Fed Governor Cook Over Mortgage Fraud Allegations, Refusal to Step Down

Overview

  • Cook filed suit in federal court in Washington seeking declaratory and injunctive relief to keep her seat, opening an unprecedented challenge to a president’s bid to oust a Fed governor.
  • Trump announced on Aug. 25 that he was removing Cook over alleged mortgage fraud tied to 2021 loans, a claim she disputes as unlawful grounds for dismissal.
  • The Justice Department has opened an investigation following a referral by FHFA Director Bill Pulte, but Cook has not been charged with any crime.
  • Her complaint argues the Federal Reserve Act allows removal only for cause, contending that unsubstantiated, pre‑appointment mortgage allegations and a lack of due process do not meet that threshold.
  • A Fed spokesperson said the central bank will abide by any court decision as a fight expected to reach higher courts could, if Trump prevails, let him nominate a replacement and potentially shift board dynamics.