Federal Reserve Governor Lisa Cook Sues Trump Over His Attempt to Fire Her

Lisa Cook, a Federal Reserve governor and the first Black woman on the Fed's Board, is suing President Trump after he demanded her removal, citing alleged mortgage misrepresentation. Trump has accused Cook of mortgage fraud without presenting evidence and cited those claims when seeking her dismissal. Presidential authority cannot remove Fed officials over policy disagreements but allows dismissal for cause. Trump has repeatedly threatened to fire Fed Chair Jerome Powell while pressing the Fed to accelerate interest-rate cuts. Former White House adviser Aya Ibrahim characterizes Cook as an incidental target of a broader effort to exert political control over government institutions.

A president cannot get rid of Fed officials over policy disagreements, but he can dismiss someone "for cause." In recent days, Trump's allies have accused Cook of misrepresentation on her mortgage forms, which Trump cited Monday when demanding her removal. Trump has also repeatedly threatened to fire Fed Chair Jerome Powell as he pushes the central bank to cut interest rates more rapidly.

"The Federal Reserve is meant to be protected from these types of political pressures. It is an independent institution," says Aya Ibrahim, a former senior policy adviser at the White House National Economic Council, where she covered the financial regulation portfolio and supported Cook's confirmation. Ibrahim says Cook, the first Black woman to serve on the Fed's Board of Governors, is an incidental target of Trump's larger "desire to exert control over all parts of government."

Federal Reserve Governor Lisa Cook says she'll file a lawsuit against President Trump's attempts to fire her. Cook is the first Black woman to sit on the Federal Reserve Board of Governors. Trump is claiming, without evidence, that Cook committed mortgage fraud. Cook's attorney says the president, quote, "lacks any factual or legal basis" to fire her. Trump has also repeatedly threatened to fire Fed Chair Jerome Powell, who's been pressured by the president to lower interest rates.

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