Fed Governor Cook Sues Trump Over Removal Attempt

Federal Reserve Governor Lisa Cook has filed a lawsuit to block President Donald Trump's unprecedented attempt to remove her from the Fed's Board of Governors, arguing that his firing lacks legal and factual basis. Trump announced her dismissal on social media, accusing her of past mortgage-related misconduct, although she has not been charged with any crime and the alleged incidents occurred before her Fed appointment. Legal experts and former Fed chair Janet Yellen warn that this move threatens the Federal Reserve's long-standing political independence and could allow the president to exert undue influence over monetary policy, especially as Trump pushes for significant interest rate cuts. Cook's lawsuit requests an injunction to affirm her position and uphold the Fed's independence, while the central bank has stated it will adhere to the court's ruling. Trump has already appointed several Fed board members and aims to secure a majority to support his policy preferences, including lowering interest rates amid high inflation and a slowing housing market. The case marks a significant test of presidential authority over independent federal institutions during Trump's second term.