Fed Governor Cook sues Trump over firing attempt

Investing.com -- Federal Reserve Governor Lisa Cook filed a lawsuit Thursday challenging President Donald Trump’s attempt to fire her, setting up a historic battle over the independence of the U.S. central bank.

The lawsuit was filed in federal court in Washington, according to court records, though the full complaint was not immediately available.

Cook’s legal action comes after Trump announced on Monday he was firing her over allegations she lied on mortgage applications. The president claimed in his letter that he had "sufficient cause" to remove Cook from her position, citing 2021 mortgage documents where she allegedly indicated that properties in both Michigan and Georgia were primary residences.

Cook has denied any wrongdoing and has not been charged with any crime. She was appointed to the Federal Reserve’s governing body by President Joe Biden in 2022 and is the first African-American woman to serve in this capacity.

Prominent Washington attorney Abbe Lowell is representing Cook in the legal battle. Lowell stated on Tuesday that Trump lacks the authority to remove Cook from the politically independent Federal Reserve, adding that the president’s attempt to fire her "lacks any factual or legal basis."

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