Fed Governor Lisa Cook’s Lawsuit Against Trump Drops, Setting Up Major Legal Battle

(Manuel Balce Ceneta/AP photo)

Embattled Fed Governor Lisa Cook’s lawsuit against President Donald Trump over her firing has officially been filed, setting up an extraordinary legal fight.

The lawsuit was filed Thursday morning, and lists Trump, the Fed’s board of governors, and Chair Jerome Powell as defendants.

The suit comes days after Trump announced in a Truth Social post that he was firing Cook following claims that she had committed mortgage fraud.

“You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump wrote in a letter that accompanied the post.

Cook, the first Black woman to serve on the Board of Governors, has not been charged with any crimes, though the mortgage fraud allegations have been referred to the Department of Justice.

The saga began last week when Federal Housing Finance Agency boss Bill Pulte blasted out a series of X posts accusing Cook of mortgage fraud.

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.

“I believe the President has cause to fire Lisa Cook,” Pulte added in one of his posts. But whether or not Trump has the authority to do so is murky.

The Supreme Court indicates the commander in chief can terminate a Fed official “for cause,” according to the Associated Press, but not for ideological or policy differences.

Cook has 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.”