Federal Reserve Governor Lisa Cook filed suit against President Donald Trump, challenging his order to remove her as invalid.
Trump recently directed Cook’s dismissal amid mortgage fraud allegations. In a letter posted on Truth Social, Trump cited Constitution and 1913 Federal Reserve Act to justify immediate firing.
Cook argues in court filing that no valid grounds exist under Constitution or Federal Reserve law for removal. White House claims sufficient reason stems from belief Cook provided false info in mortgage documents, prompting president to exercise lawful power.
Cook serves as one of seven on central banking board and holds key role in 12-member committee setting interest rates. Recently, she voted with Chairman Jerome Powell to keep rates unchanged. Trump long pushed for lower rates.
Legal experts predict case could reach Supreme Court. Federal Reserve law denies president power to dismiss governors at will. Removal without proven cause would mark major interference in central bank independence.
