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 a defendant.
Trump has argued there was sufficient reason to believe Cook had made false statements on her mortgage, invoking his constitutional powers to justify the dismissal. Cook maintains that no cause exists under the law for her removal.
As a member of the board responsible for setting interest rates, Cook's situation might provoke a significant legal discussion, possibly ending up at the US Supreme Court. Cook's attorney, Abbe Lowell, contends, 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.
The White House has countered that the president acted within his rights, with spokesperson Kush Desai asserting, The President determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions.
This lawsuit is particularly critical as it intersects with broader concerns about the Federal Reserve's independence amid increasing pressure from the Trump administration over interest rates. Cook's ongoing legal battle could reshape the dynamics of the Federal Reserve and its governance.
