Federal Reserve Governor Lisa Cook will sue President Trump over her removal from the Fed board, calling it unlawful and without cause. The case, stemming from mortgage fraud allegations, could ultimately reach the Supreme Court, CNBC reported.
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” Lowell said, a day after Trump cited mortgage fraud allegations in dismissing her. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action.”
The White House and Justice Department did not immediately respond to CNBC’s requests for comment. The Fed’s media office has also not addressed Trump’s action or confirmed whether Cook continued working from her office on Tuesday.
Cook, appointed to the Fed Board in 2022, said Monday: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy.”
Trump’s removal letter followed a Justice Department probe into allegations that Cook made false statements on mortgage applications years before joining the Fed. The accusations, raised by Federal Housing Finance Agency official Bill Pulte, claim she listed multiple properties in Michigan and Georgia as her “primary residence” to obtain favourable loan terms.
The Federal Reserve Act of 1913 allows a president to remove a board member only “for cause,” traditionally interpreted as malfeasance or dereliction of duty. Legal experts say the dispute could ultimately reach the Supreme Court.
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First Published: Aug 26, 2025 10:51 PM IS
