Fed governor Lisa Cook sues Trump, alleging 'illegal attempt' to fire her

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Posted by AI on 2025-08-28 21:25:34 | Last Updated by AI on 2025-08-29 04:06:00

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Fed governor Lisa Cook has sued President Trump, alleging that his attempt to fire her was an attempt to undermine the Fed's independence.

Trump announced Monday that he was removing Cook from her position on the Feds board of governors effective immediately, citing an unconfirmed allegation from a former advisor that Cook had obtained a mortgage on a second home she incorrectly described as her primary residence.

Cook promptly filed a lawsuit against Trump, arguing that he had no authority to fire her.

The lawsuit sets the stage for a legal battle over the US president's extraordinary bid for greater control of the central bank.

Cook's lawsuit comes after a tumultuous year for the Federal Reserve, which has been fighting to contain inflation and struggling to stabilize markets amid the Trump administration's unprecedented attack on the central bank.

Cook's lawsuit will provide an additional obstacle for the White House, which is already facing investigations and lawsuits over Trump's attempt to interfere with the Fed's independence.

Cook's standing up to Trump will likely inspire some, but others may wonder about the merits of a suit that could further destabilize an already turbulent Fed.

Only time will tell what effect Cook's lawsuit will have on the broader context of Fed independence and presidential overreach.

For now, Cook's lawsuit promises to add even more drama to an already dramatic situation.

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