Federal Reserve governor Lisa Cook will sue the Trump administration after President Donald Trump announced her removal over unverified allegations of mortgage fraud. Cook, appointed in 2022 and serving a term until 2038, has refused to step down, saying the president has “no authority” to remove her from the independent central bank’s board.
Her attorney, Abbe Lowell, stated that Trump’s action “lacks any factual or legal basis” and confirmed plans to file a lawsuit to block the move. Cook emphasized she would continue performing her duties on the Fed’s Board of Governors and policy-setting committee while the legal challenge proceeds.
The Federal Reserve also acknowledged that Cook intends to seek a judicial ruling to confirm her ability to remain in office. The attempted dismissal is viewed as an escalation of Trump’s pressure campaign on the central bank, which has resisted his repeated demands for faster interest rate cuts.
Democratic leaders, including Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren, denounced Trump’s move as a “brazen power grab” that threatens the independence of financial regulators. Economists and former officials warned the attempt could weaken confidence in U.S. institutions, destabilize markets, and raise costs for households.
Cook, a respected economist and the first Black woman to serve on the Fed’s board, previously taught at Harvard and Stanford and served in the Obama administration. Her dismissal attempt is expected to become a major legal battle over presidential power and the independence of the Federal Reserve.
