Federal Reserve Governor Files Lawsuit to Block Trump’s Removal Attempt
(MENAFN) U.S. Federal Reserve Governor Lisa Cook plans to file a lawsuit to block President Donald Trump’s effort to remove her, her attorney announced Tuesday, arguing the president lacks the authority to dismiss her.
“His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis,” lawyer Abbe Lowell said in a statement. “We will be filing a lawsuit challenging this illegal action.”
Trump, in a letter shared on Truth Social Monday night, declared Cook’s termination “effective immediately” due to alleged “deceitful and potential criminal conduct in a financial matter.”
The president’s claim referenced a criminal referral from Federal Housing Finance Agency Director Bill Pulte, who accused Cook of mortgage fraud. According to the media,
Pulte alleges Cook improperly claimed two primary residences—in Michigan and Georgia—in 2021 to secure favorable mortgage terms.
Cook has rejected the firing and refused to resign. “President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so,” she said in a statement. “I will not resign.”
Asked about the lawsuit during a White House cabinet meeting Tuesday, Trump responded: “She seems to have had an infraction.”
“We need people that are 100 percent above board. And it doesn't seem like she was,” Trump told reporters.
The president indicated he is still evaluating candidates to replace Cook. “We have some very good people for that position.”
Earlier this month, after Federal Reserve Governor Adriana Kugler resigned, Trump nominated Stephen Miran, chair of the White House Council of Economic Advisers, to temporarily fill a vacancy on the Fed Board.
The Justice Department opened a criminal probe last week into Cook’s alleged false statements on mortgage applications, which occurred before she assumed her Fed role on May 23, 2022.
Cook, nominated by former President Joe Biden, is the first Black woman to serve on the Federal Reserve Board.
Media outlets have described Trump’s move as “unprecedented” in the history of the Fed’s traditionally independent board.
The Federal Reserve said Tuesday it will comply with any court ruling regarding the dispute.
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