BREAKING: Federal Reserve governor Lisa Cook has filed a lawsuit against President Donald Trump, Chairman Jerome Powell, and the Fed’s board of governors, seeking to block Trump’s recent attempt to terminate her from the central bank. The lawsuit was officially filed in the U.S. District Court for the District of Columbia on Thursday, asserting that Trump’s dismissal is “unlawful and void.”
This dramatic legal action follows Trump’s announcement late Monday, where he cited allegations of mortgage fraud against Cook, labeling her actions as “deceitful and potentially criminal.” This firing attempt represents the culmination of months of tension, as Trump has criticized the Federal Reserve and Powell for maintaining relatively high interest rates throughout the year.
In her lawsuit, Cook argues that Fed board members can only be removed for cause, which includes inefficiency, neglect of duty, or malfeasance. She is demanding immediate declaratory and injunctive relief to confirm her status as an active member of the Board of Governors.
The suit emphasizes the importance of safeguarding the Fed’s independence, stating, “Governor Cook seeks immediate relief to allow her and the Federal Reserve to continue its critical work.” This legal battle highlights the ongoing friction between the Trump administration and the Federal Reserve, particularly regarding economic policy and interest rates.
As this situation develops, all eyes will be on the court’s response and whether Cook will be able to retain her position amid these accusations. This lawsuit could have significant implications for the Federal Reserve’s operations and its relationship with the executive branch.
Stay tuned for updates as this story unfolds.