Federal Reserve Governor Lisa Cook has filed a lawsuit to block President Donald Trump’s attempt to remove her from the central bank, setting up a major legal showdown over presidential power.
Trump announced her dismissal earlier this week, citing “cause” based on mortgage fraud allegations raised by Federal Housing Finance Agency Director Bill Pulte.
Breaking News: Federal Reserve Governor Lisa Cook filed a lawsuit on Thursday claiming President Trump has no power to remove her from office, setting up a legal battle that could reset long-established norms for the U.S. central bank's independence. https://t.co/XQv2XMnM6p pic.twitter.com/XHwu20CaKp
— Yahoo News (@YahooNews) August 28, 2025
The administration has accused Cook of improperly designating two properties as her primary residence. Cook, who has not been charged with any wrongdoing, said the allegations are a pretext for Trump to reshape the Fed board with loyalists.
Cook’s 24-page complaint asks a federal court in Washington, D.C., to rule that unproven claims are not valid grounds for removal under federal law.
The Fed said it will follow the court’s decision. The outcome could determine whether Cook can participate in the Fed’s September meeting, where policymakers are expected to cut interest rates.
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TIPP Staff
