United States of America

Fed Governor Cook Sues Trump Over Firing Attempt

Published AUG 29 2025

Story

Above: Lisa Cook during the Federal Reserve Board open meeting in Washington, D.C., on June 25, 2025. Image credit: Al Drago/Bloomberg/Getty Images

The Facts

Federal Reserve Governor Lisa Cook filed a federal lawsuit on Thursday challenging President Donald Trump's attempt to fire her over allegations of mortgage fraud, arguing the removal violates federal law and her constitutional rights.
guardian
New York Post
Trump announced Cook's removal on Monday via Truth Social, attaching a letter stating that there was "sufficient cause" for her firing, citing allegations that she had falsely claimed two homes as her primary residences in 2021 before joining the Federal Reserve.
Donald Trump on Truthsocial
The Japan Times
The Times (UK)
Cook's lawsuit argues that the "unsubstantiated" allegations are not valid grounds for removal under the Federal Reserve Act (FRA) as they fail to relate to any actions, "inefficiency, neglect of duty, or malfeasance in office" in her official capacity as governor.
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The lawsuit also claims that her attempted firing would violate her statutory right to notice and hearing under Section 10 of the FRA, as well as her Fifth Amendment rights by removing her "property interest" as governor without providing any due process.
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Cook's legal team, led by attorney Abbe Lowell, requested an injunction to block her removal, along with declarations affirming that Trump's purported firing was unlawful, injunctions against non-presidential defendants, as well as awards for costs and "all other appropriate relief."
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In responding statements to the press, White House spokesperson Kush Desai defended the firing as lawful, stating that there was cause to remove a governor "credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions."
FOX News
BBC News

Sources Split

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RIGHT

ESTAB
CRIT

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PRO
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The Spin

Pro-government narrative

President Trump was correct in his decision to remove Cook from her position in the Federal Reserve. For the most senior financial institution in the U.S. to function, it requires the total confidence of the American people. Cook's credible allegations of mortgage fraud only undermine this trust, jeopardizing the integrity of the Federal Reserve altogether.

Truthsocial

Government-critical narrative

The attempt to fire Cook is an unprecedented assault on the Federal Reserve designed to install Trump allies who will rubber-stamp his radical economic agenda. Significantly, the sacking would also be illegal, as it lacks any valid grounds for removal, while the absence of notice, process, and hearing violates Cook's statutory and constitutional rights.

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