(Crankers) President Donald Trump ordered the Federal Reserve governor Lisa Cook removed from office. Cook fired back with a lawsuit, fighting the firing by suggesting it lacked due process and didn’t fall in line with the Federal Reserve Act. Trump wanted her fired, but Cook said she would not resign. Since she wouldn’t resign, Trump fired her. But Cook believes Trump didn’t have the authority to fire her, which resulted in the lawsuit.
Why did Trump fire Lisa Cook?
President Trump announced the immediate dismissal of Lisa Cook from the Federal Reserve Board of Governors, citing “mortgage fraud allegations” as justification.
These allegations stemmed from a referral by Bill Pulte, Director of the Federal Housing Finance Agency, who claimed that in 2021, Cook designated two different properties—one in Michigan and another in Georgia—each as her primary residence on mortgage applications, a practice that could ostensibly secure more favorable loan terms.
Trump framed his action as within his authority, pointing to his power under Article II of the Constitution and the Federal Reserve Act to remove a Fed governor “for cause,” reported NPR.
Trump appears to be attacking the Fed in numerous ways as an attempt to get Jerome Powell to lower interest rates faster, which would actually benefit most Americans by saving everyone money. Except, Jerome Powell constantly refuses to lower the interest rates, therefore hurting Americans in the wallet.
Why did Lisa Cook sue Trump?
Lisa Cook and her attorney, Abbe Lowell, firmly reject the firing, arguing that it is legally baseless and that Trump lacks the authority to remove her from the Fed without proven misconduct.
The Federal Reserve Act—established in 1913—stipulates that governors serve fixed 14-year terms and may only be removed “for cause,” an intentionally high threshold meaning something like malfeasance, inefficiency, or neglect—not unproven allegations.
Cook promptly filed a lawsuit on August 28, 2025, challenging her removal and seeking a court injunction to stay in her position. The lawsuit names Trump, Chairman Powell, and the Fed Board as defendants .
Legal experts, legislators, and Fed officials have raised alarms that this move threatens the independence of the Federal Reserve and may constitute a dangerous precedent in politicizing what should be a nonpartisan institution.