US Federal Reserve Governor Lisa Cook has filed a lawsuit against President Donald Trump after he announced her removal from office.
The legal battle marks a major escalation in tensions between Trump and the central bank. Cook’s case, filed Thursday, challenges what she calls an “unprecedented and illegal attempt” by Trump to fire a sitting Fed governor.
Cook argues that Trump’s action is unconstitutional and threatens the independence of the Federal Reserve.
Court filings stress that if the move stands, it would mark the first time in history that a Federal Reserve governor was forced out this way.
Cook is seeking an immediate court ruling to confirm her status as a Federal Reserve governor.
Her legal team also wants declaratory and injunctive relief to block Trump from interfering further with the central bank.
She argues that Congress created the Fed as an independent institution, and its governors cannot be removed at the president’s discretion.
Trump, however, insists that Cook misled lenders on past mortgage applications.
On Monday, he posted a letter on his Truth Social platform claiming that she declared two separate homes in Michigan and Georgia as her “primary residences.”
Trump used those claims as justification for her dismissal, saying Cook could not be trusted to oversee the nation’s financial system.
The allegations stem from before Cook’s tenure at the Fed. Importantly, no criminal charges have been filed against her. Cook has dismissed Trump’s accusations as a political attempt to undermine her authority and intimidate other Federal Reserve officials.
Analysts warn that Trump’s push could damage global confidence in the Fed’s independence. Central banks around the world rely on trust, stability, and credibility.
Any sign of political interference, experts say, could rattle markets and weaken the United States’ economic leadership.
Cook, who became the first Black woman to serve on the Federal Reserve Board of Governors in 2022, is seen as a symbol of progress and inclusion in US economic leadership.
Her removal, if upheld, would represent not just a personal setback but also a major political shift in how presidents can influence the central bank.
Trump has frequently criticized the Fed, accusing it of undermining his economic agenda. His attempt to fire Cook signals a broader strategy to assert control over an institution designed to remain outside partisan politics.
For now, the courts will decide whether Lisa Cook keeps her seat at the Fed or whether Trump’s unprecedented move sets a new and controversial precedent in American economic history.