Federal Reserve governor Lisa Cook has filed a lawsuit against former US president Donald Trump, challenging his attempt to fire her from the central bank’s board of governors. Cook described the move as an “unprecedented and illegal effort” to undermine the Fed’s independence.
Trump announced her removal earlier this week, citing unverified allegations related to a mortgage application. Cook rejected the claim, saying the president had “no authority” to dismiss her, and vowed to continue her duties.
Filed in federal court in Washington, the lawsuit argues that under the Federal Reserve Act, governors can only be removed “for cause” with proper legal justification. Cook’s legal team insists the allegations are pretextual, part of a broader effort by Trump to gain influence over monetary policy by filling vacant Fed seats.
Cook, appointed in 2022, became the first Black woman to serve on the Fed’s board. Her suit warns that allowing political interference would erode the central bank’s century-long independence, long regarded as essential to safeguarding economic stability.
