Federal Reserve Gov. Lisa Cook sues Trump admin to block attempted firing
Share and Follow


WASHINGTON (AP) Federal Reserve Governor Lisa Cook has sued the Trump administration in an effort to overturn the president’s attempt to fire her, launching an unprecedented legal battle that could significantly reshape the Fed’s longstanding political independence.

No president has sought to fire a Fed governor in the institution’s 112-year history until Trump posted a letter on his Truth Social media platform late Monday saying that Cook was fired. Trump said the reason for her removal were allegations that she committed mortgage fraud in 2021, before she was appointed to the board.

The Supreme Court has signaled that the president can’t fire Fed officials over policy differences, but he can do so “for cause,” typically meaning misconduct or neglect of duty. Most legal experts say that a “for cause” removal requires some type of process that would allow Cook to respond to the charges, which hasn’t happened. Cook has not been charged with any crime.

The president’s decision comes as he has repeatedly attacked Fed Chair Jerome Powell and the other members of the Fed’s interest-rate setting committee for not cutting the short-term interest rate they control more quickly. It currently stands at 4.3%, after Fed policymakers reduced it by a full percentage point late last year.

Powell signaled last week that the central bank was leaning toward cutting its rate at its next meeting Sept. 16-17.

Those attacks have opened up the White House to the criticism that its firing of Cook over alleged mortgage fraud is just a pretext to open up another seat on the board for a Trump loyalist. Trump has said he will only appoint people to the Fed who will support lower rates.

Share and Follow
You May Also Like
State officials and daycare manager push back on viral video fraud allegations in Minnesota

Minnesota Daycare Fraud Allegations Debunked: State Officials and Manager Defend Against Viral Video Claims

On Monday, Minnesota officials and a daycare manager refuted accusations of fraud…
Congresswoman accused of stealing $5M in COVID funds maintains innocence

Congresswoman Denies Allegations in $5M COVID Funds Scandal: The Truth Behind the Accusations

Outside a Miami federal courthouse on Monday, U.S. Representative Sheila Cherfilus-McCormick firmly…
Bruce Blakeman is right about ‘toxic’ battery farms — and the 'need' is purely Gov. Hochul's fault

Bruce Blakeman Criticizes Gov. Hochul’s Role in ‘Toxic’ Battery Farm Controversy: A Call for Sustainable Solutions

Bruce Blakeman, a Republican contender for governor, has taken a strong stance…
I worked for a coroner... these five tips could save your life

Life-Saving Insights from a Coroner’s Office: 5 Essential Tips You Need to Know

While it’s impossible to lead a life completely free of injuries, a…
Stephen Colbert's reason to 'slip into the body' of Donald Trump

Stephen Colbert Reveals the Surprising Motivation Behind His Donald Trump Impersonation

Stephen Colbert, known for his sharp wit and ongoing sparring with President…
Texas businessman, Gov Abbott appointee shot dead in border city: police

Texas Business Leader and Governor’s Appointee Tragically Killed in Border Community: Police Report

A well-known businessman, who had been appointed by Texas Governor Greg Abbott,…
From Gaza to Iran: What’s at stake in Trump-Netanyahu Mar-a-Lago talks?

High-Stakes Mar-a-Lago Summit: Trump and Netanyahu’s Middle East Strategy Unveiled

President Donald Trump is set to convene with Israeli Prime Minister Benjamin…
Missing Texas teen could be in 'imminent danger'

Urgent Search Underway for Texas Teen Believed to Be in Serious Danger

(NewsNation) — Officials have issued an alert regarding a teenager last seen…