Fed Governor Cook to sue Trump
The attorney for Federal Reserve Board Governor Lisa Cook has announced that they will take legal action against U.S. President Donald Trump's decision to remove her from office.
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Lisa Cook, the first Black woman to serve on the Federal Reserve Board of Governors, who was dismissed by U.S. President Donald Trump, is preparing to file a lawsuit against Trump.
Cook's attorney, Abbe Lowell, stated that they would challenge Trump's decision to remove Cook in court, saying, "The attempt to remove her based solely on a recommendation letter lacks any factual or legal basis. We will challenge this illegal action through the courts."
In his remarks during a cabinet meeting today, Trump stated, "We need people who are completely honest, but it appears she is not," and noted that he has several "good names" in mind to replace Cook.
A FIRST IN FED HISTORY
Trump had cited "deceptive and potentially criminal" actions regarding a mortgage loan Cook obtained in 2021 as the reason for her dismissal. In a social media post yesterday, Trump accused Cook of making false statements during her mortgage application, claiming she signed a document for a property in Michigan pledging to live there for a year. Trump said, "Two weeks later, she signed another document for a property in Georgia, again stating she would live there for a year."
Emphasizing that she learned of these allegations through the media, Cook stated that Trump does not have the authority to remove her and that she would continue in her role. Cook said, "I will not resign. I will continue to perform my duties to help the American economy, as I have done since 2022."
Cook became the first board member in the 111-year history of the Fed to be removed by a U.S. president. During his first term at the White House, U.S. President Trump had also pressured the Fed to lower interest rates. Intensifying this pressure in recent months, Trump had demanded that interest rates be cut by several points and threatened to fire Fed Chair Jerome Powell. With the removal of Cook, who was appointed by former President Joe Biden in 2022, it is expected that Trump will appoint someone within the Fed who is favorable to lowering interest rates.