Fed Governor Lisa Cook to Challenge Trump’s Firing Her in New Lawsuit
(Manuel Balce Ceneta/AP photo)
An attorney for Federal Reserve Governor Lisa Cook will file a lawsuit against President Donald Trump after she rejected his move to fire her over allegations of mortgage fraud, according to reports.
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” an attorney for Cook said in a statement to CNN. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action.”
On Monday, Trump penned a letter to Cook that he posted on Truth Social, informing her that “you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.” The president claimed that he was removing Cook “for cause.” The Trump administration alleges that Cook may have falsified records to receive more favorable terms on a mortgage. Cook, who is the first Black woman to serve on the Board of Governors, has not been charged with a crime.
“The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve,” Trump wrote. “In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”
It remains unclear whether Trump has the authority to fire Cook.
Trump said last week it was his intent to fire Cook over mortgage fraud allegations sent over X by Federal Housing Finance Agency boss Bill Pulte.
Pulte claimed that Cook used an Atlanta condo as her primary residence, two weeks after taking a loan on a Michigan home she also declared as her primary residence.
Cook denied any wrongdoing, saying in a statement: “I have no intention of being bullied to step down from my position because of some questions raised in a tweet. I do intend to take any questions about my financial history seriously as a member of the Federal Reserve, and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”
