US Fed Governor Lisa Cook sues Trump over attempted dismissal

Federal Reserve Governor Lisa Cook has reportedly filed a lawsuit challenging US President Donald Trump’s attempt to remove her from office, setting the stage for a potential legal battle over the independence of the central bank.

According to reports, Cook argued that Trump overstepped his authority by announcing on August 25 that he intended to dismiss her. Under federal law, a Fed governor can only be removed for cause. Cook’s lawsuit states that the president’s move was unlawful and without precedent.

Trump has accused Cook of mortgage fraud allegedly committed in 2021, a year before she joined the Federal Reserve Board. Cook has denied the allegation and argued in her filing that even if it were true, it would not constitute grounds for removal.

Cook has also sought a temporary restraining order to block any action by the Fed to remove her while litigation is ongoing. She further claimed that Trump violated her constitutional right to due process by attempting to oust her without notice or a hearing.

The case has been assigned to US District Judge Jia Cobb, who was appointed by former President Joe Biden. Legal experts suggest the matter could ultimately reach the Supreme Court, which has previously upheld presidential authority to remove officials from some federal agencies. However, the court has also indicated that the Federal Reserve may represent an exception due to its need for independence from political influence.