WASHINGTON—Federal Reserve Governor Lisa Cook is suing to stop President Donald Trump from removing her from the central bank’s board, arguing the move is unlawful and that she remains entitled to her seat, CNN reported.
Cook filed the case Thursday in federal court in Washington, D.C., seeking a ruling that would block Trump’s attempt to oust her earlier this week, CNN said.
A hearing on her request for a temporary restraining order is scheduled for 10 a.m. ET Friday before U.S. District Judge Jia Cobb, an appointee of former President Joe Biden.
Cook’s lawsuit sets the stage for a high-stakes legal clash that could reshape both the Federal Reserve’s independence and the scope of presidential power, CNN reported, as Trump pushes to extend his influence into institutions once seen as insulated from politics.
“Without emergency relief, defendants are now likely to allow an unexpired vacancy to occur for which President Trump has indicated he is ready to fill,” Cook’s lawyers wrote in their request.
CNN noted the White House, however, said that Trump’s firing of cook was lawful.
“The President determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions,” White House spokesman Kush Desai said in a statement on Thursday. “The removal of a governor for cause improves the Federal Reserve Board’s accountability and credibility for both the markets and American people.”
As CUToday.info reported, credit unions are being pulled into the political crossfire after Trump moved to oust Cook, alleging she misrepresented her residency status on two mortgages. Both loans—one from University of Michigan Credit Union and another from Bank Fund Credit Union—were originated in 2021, about a year before the Senate confirmed Cook to the Fed Board.
Trump’s action, based on a referral from Federal Housing Finance Agency Director William Pulte, accuses Cook of claiming two separate homes as her primary residence. Cook, represented by attorney Abbe Lowell, has rejected the charge, saying the President lacks authority to remove her without lawful cause.