Fed governor Cook sues Trump over attempted ousting
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The news: US Federal Reserve governor Lisa Cook has filed a lawsuit challenging President Donald Trump’s efforts to fire her, igniting an unprecedented legal battle over the independence of the central bank.
The context: Cook filed the lawsuit in federal court in Washington on Thursday, following through on her comments to fight the order for her dismissal by Trump earlier this week.
The suit asks for a preliminary injunction that would allow Cook to continue to serve as a Fed governor while the courts examine the broader case.
CNN reports that Cook claims that Trump’s attempted firing violated her due process rights under both the Constitution and federal law, which she says include receiving proper notice of her alleged wrongdoing and a hearing through which she can respond to the allegations.
Cook also claims Trump is attempting to redefine the meaning of “cause” in a way that would allow him to fire any board member “with whom he disagrees about policy based on chalked up allegations.”
Late on Monday Trump announced via Truth Social he would remove Cook over alleged mortgage fraud, citing “sufficient cause to remove you from your position.” The firing stems from allegations made by Federal Housing Finance Agency director Bill Pulte, who accused Cook of mortgage fraud. Hours after Trump’s post on Monday, Cook said she would not resign: “President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so.”
If Trump’s firing is successful, he would be able to nominate a new member of the Fed board, giving him a 4-3 majority.
The Judge for the matter has not yet set a hearing date.
