Federal Reserve Governor Lisa Cook Sues Trump Administration Over Removal Attempt

Federal Reserve Governor Lisa Cook has filed a lawsuit against President Donald Trump's administration to block her dismissal, challenging the president's authority to remove a Senate-confirmed Fed board member without cause. Cook, the first Black woman on the Fed board, contends that Trump's allegations of mortgage fraud are unfounded and a pretext to replace her with a loyalist, threatening the Federal Reserve's political independence. The lawsuit, which also names Fed Chair Jerome Powell and the Federal Reserve board to prevent them from facilitating her firing, seeks an injunction and court declarations defining the legal standards for removal, emphasizing that unsubstantiated prior allegations should not constitute cause. This unprecedented legal battle highlights concerns over Trump's efforts to control independent agencies and could redefine the century-old protections designed to shield the Fed from political pressures. The case, assigned to Judge Jia Cobb, is set for a hearing soon and has sparked public debate over the implications for the U.S. central bank's autonomy.