Federal Reserve Board Governor Lisa Cook is preparing to sue President Donald Trump after he abruptly removed her from her position, according to Reuters. Her attorney Abbe Lowell announced Tuesday that a lawsuit is coming to challenge the dismissal.Lisa Cook
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” Lowell said in a statement. He called Trump’s decision “an attempt to fire her, based solely on a referral letter,” and added that it “lacks any factual or legal basis.”
Lowell said the legal team will move forward quickly, describing the action as “illegal” and emphasizing that Cook intends to fight it in court.
If Cook follows through with her lawsuit, it could ultimately land before the Supreme Court. The Federal Reserve Act of 1913 makes it clear that a president can only fire a member of the Fed’s Board of Governors “for cause.” Traditionally, that has been interpreted to mean either misconduct or neglect of duty while serving.
The situation escalated after the Justice Department opened a criminal investigation into Cook last week. She has been accused of making false statements on mortgage applications by Bill Pulte of the Federal Housing Finance Agency. Pulte alleged that Cook signed paperwork for homes in Michigan and Georgia claiming both as her primary residence. He argued that she did so “in order to potentially secure lower interest rates and more favorable loan terms.” These documents were reportedly signed before Cook joined the Fed.
Trump cited those accusations on Monday night in a letter to Cook that informed her of her removal.
Cook rejected his decision in her own statement that same day. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said. She also made it clear she would not be stepping down. “I will not resign,” Cook said. “I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
The fight over Cook’s role is shaping up to be more than a personal or political dispute. It raises deeper questions about how much power a president has over the independence of the Federal Reserve. Legal experts say that if this case heads to the courts, it could set a precedent that affects the balance between the White House and the central bank for years to come.
For now, Cook remains firm that she is still a sitting governor at the Fed and intends to keep working while the legal battle unfolds. Trump, meanwhile, is standing behind his move, arguing that the accusations alone justify her removal. The clash is now on track to become a major test of presidential authority and the limits of executive power over one of the most important institutions in the economy.