Fed Governor Lisa Cook Plans Lawsuit After Trump Fires Her

Federal Reserve Governor Lisa Cook is preparing to sue President Donald Trump’s administration to block her firing, a move that is expected to trigger a significant legal battle potentially reaching the Supreme Court and raising questions about presidential authority over the Federal Reserve. Trump aims to gain more control over the Fed to push for lower interest rates, criticizing Chair Jerome Powell for maintaining higher rates that he believes are hampering the housing market. The president's decision to fire Cook came after allegations surfaced about her possibly committing mortgage fraud by misrepresenting primary residences, though she has not been charged or investigated and denies wrongdoing. Cook refuses to resign and insists on serving out her term, with her legal team asserting that Trump's attempt to remove her lacks legal and factual basis. Trump has expressed readiness to confront the lawsuit in court and emphasized the need for Fed officials to be above reproach, especially regarding mortgage integrity. The Federal Reserve has stated it will comply with the court's ruling on the matter.