Fed Governor Plans to Sue Trump to Keep Her Post

Lisa Cook is fighting for her job
Posted Aug 26, 2025 12:00 PM CDT
Lisa Cook Plans to Sue Trump to Prevent Firing
Lisa Cook in a 2022 file photo. She is the first Black woman to sit on the central bank's board.   (Ken Cedeno/Pool via AP, file)

Federal Reserve governor Lisa Cook plans to fight back against President Trump by borrowing one of his favorite tactics: a lawsuit. Trump's attempt to fire Cook, which he announced on Monday, "lacks any factual or legal basis," said her attorney, Abbe Lowell, reports CNN. "We will be filing a lawsuit challenging this illegal action." If the suit goes forward, it might well wind up before the Supreme Court.

  • As CNBC notes, the 1913 Federal Reserve Act gives the president to fire a member of the Fed board for "cause," and Trump maintains that mortgage fraud allegations against Cook qualify. She took out two mortgages and claimed both as her primary residence, though Cook has said she will provide a full explanation at some point.
  • The president's move is raising questions about the Fed's independence, the loss of which threatens to rattle markets. Cook's seat is pivotal: Trump has appointed two members of the seven-person board, and a third nominee is pending. Should he be allowed to replace Cook, his nominees would control the board and, thus, decisions on interest rates.

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