Fed Governor Cook sues Trump over her firing

WASHINGTON -- US Federal Reserve Governor Lisa Cook on Thursday filed a lawsuit in a federal court in Washington, DC, seeking to block US President Donald Trump's attempt to remove her from her position.

The suit requests a preliminary injunction to allow Cook to remain in office while the court examines the broader case.

It also names Fed Chair Jerome Powell and the Board of Governors as defendants, saying they are able to "effectuate President Trump's purported termination of Governor Cook."

Trump said in a letter posted on Truth Social on Monday night that Cook's firing was "effective immediately" for alleged "deceitful and potential criminal conduct in a financial matter."

Trump cited a criminal referral letter from Federal Housing Finance Agency Director Bill Pulte dated Aug. 20, accusing Cook of mortgage fraud. Pulte alleged that Cook had claimed two primary residences in the states of Michigan and Georgia in 2021 to get better mortgage terms.

In response, Cook said she would not resign in a statement issued hours later. "President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so."

Trump has put immense pressure on the Federal Reserve since taking office. The lawsuit kicked off an unprecedented legal battle over Trump's attempt to remove a top central bank official, which is likely to end up at the Supreme Court, local media reported Thursday.

The ruling of the lawsuit will determine the extent to which Trump and future US presidents can meddle with the central bank, local media stressed.

Cook, nominated by former president Joe Biden, is the first Black woman to serve on the Fed's board.