Federal Reserve Governor Lisa Cook filed a lawsuit Thursday in Washington, D.C., accusing former President Donald Trump of launching an “illegal and unprecedented attempt” to oust her from her post on the Fed’s powerful Board of Governors.
In her complaint, Cook argues that Trump’s effort violates the Federal Reserve Act (FRA), which allows governors to be removed only “for cause.” She said Trump’s stated reason — an unverified allegation tied to mortgage paperwork she submitted prior to Senate confirmation — falls far short of that legal threshold.
“Removing Governor Cook would subvert the FRA,” the lawsuit asserts, adding that the supposed basis for dismissal “does not amount to ‘cause’ within the meaning of the statute and is unsupported by caselaw.”
Defendants Named in High-Stakes Challenge
Cook’s suit names not only Trump but also Federal Reserve Chair Jerome Powell and the Board of Governors as defendants, underscoring the institutional stakes for the independence of the central bank.
The filing claims Trump targeted Cook with a “concocted basis for removal”, attempting to mask political motivations behind bureaucratic accusations. The lawsuit contends that even if the justification had been framed more carefully, it would still collapse under legal scrutiny.
