Thursday, July 16, 2026

Federal Reserve governor Lisa Cook sues Trump over ‘illegal’ removal 

Ms Cook challenged the authority of the president to remove her from office.

• August 28, 2025
Lisa cook and Donald Trump
Lisa cook and Donald Trump

Governor of the United States Federal Reserve Lisa Cook has filed a lawsuit against President Donald Trump over an attempt to remove her, as the American leader intensifies pressure on the country’s central bank. 

The move followed Mr Trump’s purported firing of Ms Cook from her position on the Federal Reserve’s board of governors over claims from one of the president’s allies that she had obtained a mortgage on a second home she incorrectly described as her primary residence.


Despite Mr Trump announcing that she had been fired “effectively immediately,” Ms Cook stood her ground, arguing Trump had “no authority” to remove her, adding that “I will continue to carry out my duties to help the American economy.”

Ms Cook eventually sued Mr Trump at the federal court in Washington on Thursday, challenging the authority of the president to remove her, tagging the attempt “illegal and unprecedented.”

The lawsuit also seeks an “emergency temporary restraining order, to remain in effect until such time as the Court can further consider the merits of her claims” and declaration that Mr Trump’s announcement on Monday was unlawful and void. 

Furthermore, the 61-year-old, who hasn’t been charged with any crime, asked the court to declare “that an unsubstantiated allegation of mortgage fraud prior to a governor’s confirmation is not cause for removal.”

For months, Mr Trump has publicly attacked the Federal Reserve and its chairman Jerome Powell over the refusal to cut interest rates, but Ms Cook’s dismissal would allow him to appoint a replacement to exert greater control on the bank’s policies. 

Under the Federal Reserve Act, the only reason the bank governors can be removed from their positions is “for cause,” or some kind of wrongdoing, which Ms Cook has repeatedly denied.

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