People

Businesses

Fed Governor Sues Trump To Block Removal Amid Mortgage Dispute

Share This Article

Federal Reserve Governor Lisa Cook has filed a lawsuit to stop President Donald Trump from removing her from the US central bank, calling the move illegal and politically motivated.

Cook, who was appointed to the Fed Board in 2022, is accused by the Trump administration of fraudulently listing two separate homes as her “primary residence” when applying for mortgages in 2021. Trump cited the allegations as grounds to dismiss her — a move that would break with decades of precedent on the independence of the Federal Reserve.

In court papers filed on Thursday, Cook’s lawyers argued that any issues with the mortgage applications were unintentional and amounted to nothing more than a “clerical error.” They stressed that no one had alleged she benefited financially or intended to mislead lenders. “Such an error would not be the type of ‘offense’ that would constitute ‘cause’ for removal,” her lawyers said.

Cook also argued that she was denied due process, claiming she was given no chance to respond to the accusations before Trump announced her dismissal. Under the Federal Reserve Act, governors can only be removed “for cause” — a safeguard designed to protect the central bank’s independence from political interference.

The lawsuit escalates a growing confrontation between Trump and the Fed, which has so far resisted his demands to cut interest rates. Fed Chair Jerome Powell has also refused to resign despite repeated attacks from the White House. In her filing, Cook suggested the attempt to oust both her and Powell is part of Trump’s broader effort to seize control of the central bank.

US District Judge Jia Cobb has scheduled an emergency hearing for Friday morning in Washington on Cook’s request for a restraining order. The case will test not only Cook’s future on the Fed Board, but also the limits of presidential power over one of the world’s most influential financial institutions.

premium

Would you like to upgrade to premium?

upgrade personal profile

upgrade business profile

Our Premium Partners

Connecting businesses one meet at a time.