Cook to Sue Trump Over Her "Illegal" Firing as Fed Governor

President Donald Trump announced last week that he was firing Federal Reserve Governor Lisa Cook — an unprecedented move that brings him one step closer to reshaping the balance of the Fed’s seven-member board in his favor.

The Federal Reserve Act of 1913 allows a president to fire a Fed governor only “for cause.” (Photo: Paul Morigi, Brookings Institution Flickr) 

Cook recently said Trump lacked the authority to remove her and vowed to challenge the decision in court, her attorney Abbe Lowell confirmed, Bailey Schulz and Rachel Barber reported for USA Today.

The move comes amid Trump’s months-long campaign to influence the Fed’s decisions on interest rates.

He had previously pressured Fed Chair Jerome Powell to cut rates through insults and threats of termination, though he has since walked back those threats.

Powell said Trump has “no authority” to remove Cook and that the president’s attempt “lacks any factual or legal basis.” He added: “We will be filing a lawsuit challenging this illegal action,” Bart Jansen, Medora Lee, Joey Garrison, and Andrea Riquier also reported for USA Today.

The Federal Reserve Act of 1913 allows a president to fire a Fed governor only “for cause.” Federal Housing Finance Agency Director Bill Pulte has accused Cook of lying on mortgage applications in 2021.