Federal Reserve governor Lisa Cook has filed a lawsuit claiming Donald Trump has no authority to fire her.
The lawsuit – filed by Cook in federal court in Washington on Thursday – sets the stage for a legal battle over the US president’s extraordinary bid for greater control of the central bank. The complaint was not immediately available.
Trump tried to dismiss Cook on Monday, announcing that he was removing her from her position on the Fed’s board of governors “effective immediately” over an unconfirmed allegation from one of his allies that she had obtained a mortgage on a second home she incorrectly described as her primary residence.
But Cook stood her ground, arguing Trump had “no authority” to fire her. “I will continue to carry out my duties to help the American economy,” she said. Her attorney indicated she would file a lawsuit.
For months, Trump has publicly urged the Fed to cut interest rates, attacking the central bank – and its chair Jerome Powell – over its refusal to do so. Policymakers have stressed the need to wait and see the impact of the administration’s policies, such as tariffs and deportations, before approving a cut.
Cook’s exit would allow Trump to tap a replacement, helping him exert more control over Fed policy. He suggested on Tuesday that he would “have a majority” on the Fed’s seven-member board of governors “very shortly”, adding: “We have to get the rates down a little bit.”
The Trump administration has pursued several of the president’s political enemies, including the New York attorney general, Letitia James, and the California senator Adam Schiff, over claims of mortgage fraud. Both James and Schiff have denied the allegations.
Cook is not a politician, but is among a string of senior Fed policymakers who have defied Trump’s persistent calls for rate cuts. She became the first Black woman to sit on the central bank’s board when she was appointed to a term that was not due to end until 2038.
A respected economist, with stints at Harvard University and Stanford University, Cook served on the council of economic advisers under Barack Obama.