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Trump Battles Fed Governor in Court: Can He Fire Lisa Cook?

8/29/2025
In a high-stakes legal battle, President Trump seeks to fire Federal Reserve Governor Lisa Cook amid allegations of mortgage fraud. Cook's lawsuit claims her removal is illegal, raising critical questions about presidential power and the future of the Fed. Will the court side with Trump or uphold Cook's position?
Trump Battles Fed Governor in Court: Can He Fire Lisa Cook?
Trump aims to fire Fed Governor Lisa Cook, sparking a legal showdown over presidential power and allegations of misconduct. A decision looms in court.

President Donald Trump has taken legal action by requesting a judge to deny a request made by Federal Reserve Board Governor Lisa Cook. This request aims to prevent Trump from firing Cook while her lawsuit challenging her removal is still pending in court. In a separate court filing, the Federal Reserve indicated that it would not engage in arguments regarding the merits of Cook's request for a temporary restraining order. However, the central bank urged Judge Jia Cobb to deliver a swift ruling to resolve the ongoing dispute in the U.S. District Court located in Washington, D.C.

The filings were submitted approximately two hours before Judge Cobb commenced a hearing on Cook's request for a temporary restraining order, which seeks to maintain her position during the legal proceedings. Cook’s attorney, Abbe Lowell, initiated the session by appealing to Cobb to preserve the status quo, allowing Cook to retain her job while he, Trump’s legal representative, and other interested parties present their arguments regarding the president's authority to terminate her.

Judge Cobb acknowledged the case's significance, stating that it raises important questions that could be unprecedented, especially concerning the Federal Reserve Board. In Trump's filing, his legal team contended that Cook's lawsuit is unlikely to succeed. They argued that it is within the President's discretion to determine whether there is legal cause, as required by federal law, for the removal of a Fed Board governor.

If Trump successfully removes Cook from her position, he would be positioned to have nominated a majority of the seven-member board, which is responsible for setting interest rates. Trump has openly criticized the Federal Reserve for several months, claiming that a reduction in interest rates would enhance the U.S. economy and lower the federal government's debt financing costs.

Lisa Cook, who holds the distinction of being the first Black woman to serve as a Fed governor, argues that Trump lacks valid grounds for her dismissal. Nominated by then-President Joe Biden in 2022, her current 14-year term is set to expire in January 2038. Trump contends that his desire to fire Cook stems from allegations made by Federal Housing Finance Agency Director Bill Pulte, who claims that she committed mortgage fraud related to documents she signed for two residential properties in Atlanta and Ann Arbor, Michigan, prior to her appointment at the Fed.

On Thursday night, Pulte announced that he had submitted a second criminal referral against Cook to the Department of Justice, concerning alleged misrepresentations she made about a condominium in Cambridge, Massachusetts, along with the two other homes in her government ethics filings during her tenure as a Fed governor. In response, Lowell labeled Pulte's new referral as an obvious smear campaign designed to discredit Cook by a political operative who has made over 30 social media posts in the past two days, demanding her removal without any proper review of the facts or evidence.

Lowell emphasized, “Nothing in these vague, unsubstantiated allegations has any relevance to Gov. Cook's role at the Federal Reserve, and they in no way justify her removal from the Board.” Cook subsequently filed a lawsuit against Trump, the Fed Board of Governors, and Fed Chairman Jerome Powell on Thursday. The legal action asserts that Trump's decision to fire her is illegal and seeks an order from Cobb to maintain her position while the case is litigated.

During the court hearing, Lowell remarked, “You can’t have Director Pulte’s crazy midnight tweets be the cause,” referring to the allegations against Cook. Powell and the Fed Board were included in the lawsuit to the extent that they might, at some point, act on Trump’s desire to terminate her. In its court filing on Friday, the Federal Reserve stated its intent to comply with any order issued by the court. This dispute may ultimately require resolution by the Supreme Court.

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