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US Federal Reserve Gov. Lisa Cook delivers opening remarks at a "Fed Listens" event at the Federal Reserve Bank of Atlanta on June 4, 2025.
The suit alleges a "pretextual" bid to oust Cook in order to "vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve."
US Federal Reserve Gov. Lisa Cook on Thursday filed an anticipated lawsuit in response to President Donald Trump's contentious attempt to fire her—something no president has ever done in the 111-year history of the central bank's governing body.
"This case challenges President Trump's unprecedented and illegal attempt to remove Gov. Cook from her position which, if allowed to occur, would the first of its kind in the board's history," says the lawsuit, which was filed in the District Court for the District of Columbia, and names Trump, the Fed Board of Governors, and Fed Chair Jerome Powell as defendants.
The suit contends that Cook's termination "would subvert the Federal Reserve Act... which explicitly requires a showing of 'cause' for a governor's removal, which an unsubstantiated allegation about private mortgage applications submitted by Gov. Cook prior to her Senate confirmation is not."
The US Department of Justice last week launched a criminal investigation of alleged mortgage fraud committed by Cook. The DOJ referral accuses Cook of misrepresenting her primary residence information on mortgage documents for two properties in 2021 in order to secure more favorable loan terms.
Cook—who has not been criminally charged—denies any wrongdoing.
"The unsubstantiated and unproven allegation that Gov. Cook 'potentially' erred in filling out a mortgage form prior to her Senate confirmation does not amount to 'cause,'" the lawsuit argues. "Allowing the president to remove members of the board over policy disagreements would also render illusory the board's independence."
"The mortgage allegations against her are pretextual, in order to effectuate her prompt removal and vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve," the filing adds.
Cook's suit asks a federal judge to declare that Trump's bid to remove her is an illegal violation of her due process rights, that Fed governors may only be fired for cause, and that the unproven mortgage fraud claim does not constitute such cause. She is also seeking an injunction to bar Powell and the Fed board from firing her.
Trump's effort to fire Cook has been condemned by critics as another attempt to bully the Fed and Powell as the White House pressures the central bank to cut interest rates. Powell signaled last week that the Fed is inclined to lower interest rates during its meeting next month.
Cook is the third Trump political foe accused of mortgage fraud by his administration.
Federal Housing Finance Agency (FHFA) Director William Pulte, a Trump appointee, has also targeted Democratic New York Attorney General Letitia James, who successfully sued the president and the Trump Organization for fraud, as well as Sen. Adam Schiff (D-Calif.), who was the lead manager in the first of Trump's two House impeachments.
Cook, a nominee of former President Joe Biden, has served on the Fed Board of Governors since 2022. Her term is not set to expire until 2038. She is the first Black woman to serve as a Fed governor.
Responding to Cook's lawsuit, White House spokesperson Kush Desai said in a statement that Trump had cause to fire the governor because she was "credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions."
However, Cook's alleged offense occurred the year before she joined the Fed board.
The president's bid to oust Cook could backfire—for him and Pulte—as the discovery process of her lawsuit may reveal "if the White House ordered a Trump loyalist to move against her," according to journalist Greg Sargent.
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US Federal Reserve Gov. Lisa Cook on Thursday filed an anticipated lawsuit in response to President Donald Trump's contentious attempt to fire her—something no president has ever done in the 111-year history of the central bank's governing body.
"This case challenges President Trump's unprecedented and illegal attempt to remove Gov. Cook from her position which, if allowed to occur, would the first of its kind in the board's history," says the lawsuit, which was filed in the District Court for the District of Columbia, and names Trump, the Fed Board of Governors, and Fed Chair Jerome Powell as defendants.
The suit contends that Cook's termination "would subvert the Federal Reserve Act... which explicitly requires a showing of 'cause' for a governor's removal, which an unsubstantiated allegation about private mortgage applications submitted by Gov. Cook prior to her Senate confirmation is not."
The US Department of Justice last week launched a criminal investigation of alleged mortgage fraud committed by Cook. The DOJ referral accuses Cook of misrepresenting her primary residence information on mortgage documents for two properties in 2021 in order to secure more favorable loan terms.
Cook—who has not been criminally charged—denies any wrongdoing.
"The unsubstantiated and unproven allegation that Gov. Cook 'potentially' erred in filling out a mortgage form prior to her Senate confirmation does not amount to 'cause,'" the lawsuit argues. "Allowing the president to remove members of the board over policy disagreements would also render illusory the board's independence."
"The mortgage allegations against her are pretextual, in order to effectuate her prompt removal and vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve," the filing adds.
Cook's suit asks a federal judge to declare that Trump's bid to remove her is an illegal violation of her due process rights, that Fed governors may only be fired for cause, and that the unproven mortgage fraud claim does not constitute such cause. She is also seeking an injunction to bar Powell and the Fed board from firing her.
Trump's effort to fire Cook has been condemned by critics as another attempt to bully the Fed and Powell as the White House pressures the central bank to cut interest rates. Powell signaled last week that the Fed is inclined to lower interest rates during its meeting next month.
Cook is the third Trump political foe accused of mortgage fraud by his administration.
Federal Housing Finance Agency (FHFA) Director William Pulte, a Trump appointee, has also targeted Democratic New York Attorney General Letitia James, who successfully sued the president and the Trump Organization for fraud, as well as Sen. Adam Schiff (D-Calif.), who was the lead manager in the first of Trump's two House impeachments.
Cook, a nominee of former President Joe Biden, has served on the Fed Board of Governors since 2022. Her term is not set to expire until 2038. She is the first Black woman to serve as a Fed governor.
Responding to Cook's lawsuit, White House spokesperson Kush Desai said in a statement that Trump had cause to fire the governor because she was "credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions."
However, Cook's alleged offense occurred the year before she joined the Fed board.
The president's bid to oust Cook could backfire—for him and Pulte—as the discovery process of her lawsuit may reveal "if the White House ordered a Trump loyalist to move against her," according to journalist Greg Sargent.
US Federal Reserve Gov. Lisa Cook on Thursday filed an anticipated lawsuit in response to President Donald Trump's contentious attempt to fire her—something no president has ever done in the 111-year history of the central bank's governing body.
"This case challenges President Trump's unprecedented and illegal attempt to remove Gov. Cook from her position which, if allowed to occur, would the first of its kind in the board's history," says the lawsuit, which was filed in the District Court for the District of Columbia, and names Trump, the Fed Board of Governors, and Fed Chair Jerome Powell as defendants.
The suit contends that Cook's termination "would subvert the Federal Reserve Act... which explicitly requires a showing of 'cause' for a governor's removal, which an unsubstantiated allegation about private mortgage applications submitted by Gov. Cook prior to her Senate confirmation is not."
The US Department of Justice last week launched a criminal investigation of alleged mortgage fraud committed by Cook. The DOJ referral accuses Cook of misrepresenting her primary residence information on mortgage documents for two properties in 2021 in order to secure more favorable loan terms.
Cook—who has not been criminally charged—denies any wrongdoing.
"The unsubstantiated and unproven allegation that Gov. Cook 'potentially' erred in filling out a mortgage form prior to her Senate confirmation does not amount to 'cause,'" the lawsuit argues. "Allowing the president to remove members of the board over policy disagreements would also render illusory the board's independence."
"The mortgage allegations against her are pretextual, in order to effectuate her prompt removal and vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve," the filing adds.
Cook's suit asks a federal judge to declare that Trump's bid to remove her is an illegal violation of her due process rights, that Fed governors may only be fired for cause, and that the unproven mortgage fraud claim does not constitute such cause. She is also seeking an injunction to bar Powell and the Fed board from firing her.
Trump's effort to fire Cook has been condemned by critics as another attempt to bully the Fed and Powell as the White House pressures the central bank to cut interest rates. Powell signaled last week that the Fed is inclined to lower interest rates during its meeting next month.
Cook is the third Trump political foe accused of mortgage fraud by his administration.
Federal Housing Finance Agency (FHFA) Director William Pulte, a Trump appointee, has also targeted Democratic New York Attorney General Letitia James, who successfully sued the president and the Trump Organization for fraud, as well as Sen. Adam Schiff (D-Calif.), who was the lead manager in the first of Trump's two House impeachments.
Cook, a nominee of former President Joe Biden, has served on the Fed Board of Governors since 2022. Her term is not set to expire until 2038. She is the first Black woman to serve as a Fed governor.
Responding to Cook's lawsuit, White House spokesperson Kush Desai said in a statement that Trump had cause to fire the governor because she was "credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions."
However, Cook's alleged offense occurred the year before she joined the Fed board.
The president's bid to oust Cook could backfire—for him and Pulte—as the discovery process of her lawsuit may reveal "if the White House ordered a Trump loyalist to move against her," according to journalist Greg Sargent.