Fed Governor Lisa Cook sues Trump over attempt to fire her, calls dismissal 'unlawful'

WASHINGTON, DC: Federal Reserve Board Governor Lisa Cook on Thursday filed a lawsuit against President Donald Trump to block what she called an illegal effort to fire her, sparking a legal fight that could ultimately reach the Supreme Court.

The lawsuit, filed in federal court in Washington, DC, also names Fed Chairman Jerome Powell and the Board of Governors as defendants.

Lisa Cook challenges Donald Trump’s removal order in court

The 24-page filing says Donald Trump’s attempt to remove Lisa Cook would “subvert” the Federal Reserve Act’s protections that were designed to safeguard the independence of the central bank.

The lawsuit also claims Trump violated Cook’s right to due process because she had no chance to respond before her termination was announced.

“This case challenges President Trump’s unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would be the first of its kind in the Board’s history," Cook's attorney, Abbe Lowell, wrote in the lawsuit.

Cook is asking the court to declare Trump’s firing order “unlawful and void” and to affirm that she remains on the board.

She also wants the court to decide that allegations regarding her mortgages do not amount to “cause,” which the lawsuit defines as “inefficiency, neglect of duty, malfeasance in office, or comparable misconduct.”

Lawsuit disputes mortgage fraud claims tied to Lisa Cook

On Monday, Donald Trump posted a letter addressed to Lisa Cook informing her that he had sufficient “cause” to fire her, citing constitutional authority. The letter referenced allegations of mortgage fraud raised by Federal Housing Finance Agency Director Bill Pulte.

Her attorneys countered in the filing, “President Trump does not have the power to unilaterally redefine ‘cause’ – completely unmoored to caselaw, history, and tradition – and conclude, without evidence, that he has found it.”

Trump later told reporters, “We need people that are 100% above board and it doesn’t seem like she was,” during a cabinet meeting.

Cook rejected those claims, saying in a statement that Trump “purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” said Cook.

Despite the accusations, Cook has not been charged with any wrongdoing. She has asked the court to rule that “an unsubstantiated allegation of mortgage fraud prior to a Governor’s confirmation is not cause for removal” under federal law.

Cook has argued that Trump’s move is part of a political effort to pressure the Federal Reserve into lowering interest rates. The Fed responded that it would “abide by any court decision,” noting that it would comply if the ruling went against Cook.

Legal fight involving Trump and Lisa Cook sparks internet reactions 

The lawsuit sparked divided responses on the internet, with some suggesting that Donald Trump and Lisa Cook's legal battle could throw the nation into disarray.

Bill Pulte, the first to bring up the fraud allegations, also quickly reacted to Cook's lawsuit.

Pulte wrote, “The sanctity and integrity of mortgage applications and mortgage contracts are paramount. Violating the integrity of these agreements means putting the entire country at risk. This is why, in my mind, mortgage fraud is such a serious crime.” In another post he added, “No one is above the law.”

“At no point in her 24-page lawsuit does Lisa Cook deny she committed mortgage fraud. Clogging up the courts with her TDS martyrdom,” wrote investor James Fishback on X.

Another said, "No one is above the law."

Some voices were harsher. “Indict her already! Criminals shouldn’t be allowed to sue those holding her accountable for her crimes!” wrote one.

Another countered, “I stand with Lisa Cook! He trying she lied on her mortgage but how many times had Trump lied on documents! Ask yourself that question!”

Others reacted to the unfolding case with grim predictions. “This nation is now in disarray,” one wrote, while another added, “And she’ll lose…”

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.