Fed Board Member Lisa Cook Sues Trump Over Removal Attempt

Kokcha News Agency – Lisa Cook, a member of the Federal Reserve Board, has taken legal action against President Donald Trump, the Federal Reserve Board, and Fed Chair Jerome Powell in a lawsuit filed in the federal district court in Washington. The lawsuit aims to prevent Trump from removing Cook from her position, which she claims is based on unfounded allegations.

In the court filing, Cook’s legal team argued that Trump’s attempt to remove her is “unprecedented and unlawful” and would mark the first time in Fed history that a board member has been ousted without just cause. According to the Federal Reserve Act, a board member can only be removed for “cause,” which Cook’s lawyers argue has not been demonstrated.

The lawsuit centers on unproven allegations related to mortgage applications Cook made before her Senate confirmation. Cook’s legal team claims these allegations do not meet the legal standard for removal. The court is being asked to declare Trump’s actions “unlawful and invalid” and to allow Cook to remain in her position.

Earlier this week, Trump announced that he had removed Cook from her position, accusing her of mortgage fraud. In a letter shared on social media, Trump cited the Federal Reserve Act, which allows the president to remove a board member for “cause.” He claimed that Cook’s alleged misconduct provided sufficient grounds for her dismissal.

Cook, however, has denied the allegations and vowed to continue her duties. In a statement, she said, “President Trump claims he has removed me for ’cause,’ even though there is no cause in the law and he has no authority to do so. I will not resign. I will continue to fulfill my duties as I have since 2022 to help the American economy.”

Cook’s attorney, Abbe Lowell, also stated that Trump’s attempt to remove her has no factual or legal basis and that they would pursue legal action to challenge it.