Washington: Federal Reserve Governor Lisa Cook filed a lawsuit Thursday against President Donald Trump after he announced earlier this week that he was removing her from the Fed's Board of Governors. Trump said Monday he was dismissing Cook, citing allegations of mortgage fraud. Cook, who was nominated to the central bank by former President Joe Biden in 2022 and confirmed to a 14-year term in 2023, has rejected the accusations and vowed to fight her ouster. 'I have no intention of being bullied to step down,' Cook has said in a statement.
According to Anadolu Agency, her complaint, lodged in federal court in Washington, argues that the president lacks the authority to dismiss a sitting Fed governor. The suit asks a judge to declare Trump's action unlawful. A hearing on her request for a temporary restraining order is set for Friday before US District Judge Jia Cobb, a Biden appointee.
White House spokesman Kush Desai defended the president's move, saying Trump 'determined there was cause to remove a governor accused of lying in financial documents,' adding that the dismissal would strengthen the Fed's accountability and credibility.