Federal Reserve Governor Lisa Cook Files Lawsuit Against Trump Over Dismissal Attempt

Tue Sep 30 2025 11:02:59 GMT+0300 (Eastern European Summer Time)

Lisa Cook, a Federal Reserve governor, is suing President Donald Trump following his attempt to terminate her position, igniting a potential legal confrontation concerning the independence of the U.S. central bank.

In a significant legal move, Federal Reserve governor Lisa Cook has filed a lawsuit against President Donald Trump after he attempted to fire her from her position. The lawsuit seeks to declare the dismissal unlawful, raising concerns about the autonomy of the Federal Reserve. Cook, supported by her attorney who claims that Trump's actions violate the Federal Reserve Act, argues that no legitimate cause exists for her removal. The implications of this case could be profound, as it touches upon the boundaries of presidential power concerning the central bank's governance.

Federal Reserve governor Lisa Cook has sued President Donald Trump over his attempt to fire her, setting up a potential legal battle with implications for the US central bank's autonomy.

Cook has asked the court to declare Trump's firing order 'unlawful and void', and also named Fed Chairman Jerome Powell as defendant.

Trump has said there was 'sufficient reason' to believe Cook had made false statements on her mortgage, citing constitutional powers which he claimed allowed him to remove her. Cook previously stated that 'no cause exists under the law' to sack her.

The president has put increasing pressure on the Fed over what he perceives as an unwillingness to lower interest rates.

Cook, who is part of the board responsible for setting interest rates in the US, argues that Trump's actions undermine the independence of the Federal Reserve.

The lawsuit could lead to significant legal challenges, potentially reaching the US Supreme Court.

This case challenges President Trump's unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would be the first of its kind in the Board's history, Abbe Lowell, Cook's attorney, stated in the lawsuit.

White House spokesperson Kush Desai countered, asserting that the president exercised his lawful authority to remove Cook, citing her alleged misconduct.

Cook's lawsuit does not address the specific allegations against her, which emerged from a letter by a Trump ally. These allegations, although serious, remain unproven.

The ongoing tensions between Trump and Cook highlight the role of the Federal Reserve in economic policy as the president aligns with those advocating for lower interest rates to support his economic agenda.