Fed Governor Lisa Cook Files Lawsuit Against Trump Over Removal Order

Washington, D.C. (Aug 29) – Federal Reserve Governor Lisa Cook has taken legal action against former President Donald Trump after he attempted to remove her from office. The lawsuit, filed Thursday in federal court, challenges Trump’s authority to dismiss a Fed governor, a move Cook argues is both unlawful and politically motivated.

Cook had previously stated that she would not resign, questioning whether the president even has the constitutional power to fire a sitting Fed governor. Trump announced her dismissal earlier this week in a social media post, citing allegations that she misrepresented information on past mortgage applications.

The complaint describes Trump’s justification as an “unsubstantiated allegation” tied to private financial documents from before her Senate confirmation. Cook maintains that her removal violates due process rights and breaches the Federal Reserve Act, which protects central bank officials from political interference.

In a formal letter, Trump accused Cook of “deceitful and potentially criminal conduct” related to mortgage filings, arguing that such behavior erodes confidence in her integrity. The White House defended his decision, saying the president acted within his authority to remove officials for cause.

The controversy began earlier this month when Bill Pulte, director of the Federal Housing Finance Agency and a close Trump ally, accused Cook of mortgage fraud involving properties in Michigan and Georgia. He claimed she declared both homes as primary residences in 2021, a designation that can lead to more favorable loan terms.

Cook’s lawsuit names Trump, the Federal Reserve Board of Governors, and Fed Chair Jerome Powell as defendants. She is asking the court to affirm her position on the board and safeguard the independence of the central bank.

The Federal Reserve has declined to comment on the case.