Federal Reserve governor Lisa Cook filed a lawsuit in federal court challenging President Trump's attempt to remove her from office. Trump announced the dismissal on social media, citing allegations from a Trump ally that Cook made false statements on a mortgage application. Cook's complaint says the claim is an "unsubstantiated allegation" about private applications submitted before Senate confirmation and contends that federal law allows Fed governors to be removed only for cause. Cook asserts the firing violates her due process rights and the Federal Reserve Act and alleges the allegations are a pretext to undermine the Fed's independence. The White House defended the removal as lawful.
Federal Reserve governor Lisa Cook has sued President Trump, who had ordered her removal from office. The suit was widely expected, because Cook had already said she would not resign and had questioned the president's authority to fire her. In a social media post earlier this week, Trump said he was dismissing Cook in response to allegations from a Trump ally that she had made false statements on a mortgage application.
Cook's complaint, which was filed Thursday in federal court in Washington, D.C., is challenging the president's attempt to remove her from office. Her lawsuit argues that his rationale that she made false statements on mortgage agreements is based on "an unsubstantiated allegation" about private applications she submitted prior to Senate confirmation as governor. Under federal law designed to insulate the central bank from political pressure, Fed governors can only be removed for cause.
Trump wrote in a letter addressed to Cook, "In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity." Cook argues her firing violates her due process rights as well as the law that governs the Federal Reserve, known as the Federal Reserve Act. The complaint says the allegations are a pretext to promptly "vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve."
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