Fed governor Lisa Cook sues Trump over firing
Federal Reserve governor Lisa Cook has sued President Trump, who had ordered her removal from office.
The suit was widely expected, because Cook had already said she would not resign and had questioned the president’s authority to fire her.
In a social media post earlier this week, Trump said he was dismissing Cook in response to allegations from a Trump ally that she had made false statements on a mortgage application. It’s Trump’s latest attack on the Fed as he tries to pressure the central bank and Chair Jerome Powell to lower interest rates more quickly.
Cook’s complaint, which was filed Thursday in federal court in Washington, D.C., is challenging the president’s attempt to remove her from office. Her lawsuit argues that his rationale — that she made false statements on mortgage agreements — is based on “an unsubstantiated allegation” about private applications she submitted prior to Senate confirmation as governor.
Under federal law designed to insulate the central bank from political pressure, Fed governors can only be removed for cause.
Trump wrote in a letter addressed to Cook, “In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”
Cook argues her firing violates her due process rights as well as the law that governs the Federal Reserve, known as the Federal Reserve Act.
The complaint says the allegations are a pretext to promptly “vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve.”
White House spokesman spokesman Kush Desai on Thursday said that the president has exercised his lawful authority to remove a Fed governor for cause for being “credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions.”
Earlier this month, Federal Housing Finance Agency director Bill Pulte, a close Trump ally, who oversees the mortgage giants Fannie Mae and Freddie Mac, accused Cook of mortgage fraud, citing two home loans she obtained weeks apart in 2021, before joining the Federal Reserve. The two properties were in Michigan and Georgia. Pulte said Cook had represented that each property would be used as her primary residence — a declaration that often results in more favorable loan terms.
Cook wants the court to confirm her status as a member of the board of governors, “safeguard her and the Board’s congressionally mandated independence, and allow Governor Cook and the Federal Reserve to continue its critical work.”
Cook’s lawsuit names Trump and the board of governors of the Federal Reserve. It also names Powell “to the extent that he has any ability to take any action to effectuate President Trump’s purported termination of Governor Cook.” The Fed declined to comment on its board the Powell being named in the lawsuit.
Auburn fires coach Hugh Freeze following 12th loss in his last 15 SEC games
The 56-year-old Freeze failed to fix Auburn’s offensive issues in three years on the Plains, scoring 24 or fewer points in 17 of his 22 league games. He also ended up on the wrong end of too many close matchups, including twice this season thanks partly to questionable calls.
In a ‘disheartening’ era, the nation’s former top mining regulator speaks out
Joe Pizarchik, who led the federal Office of Surface Mining Reclamation and Enforcement from 2009 to 2017, says Alabama’s move in the wake of a fatal 2024 home explosion increases risks to residents living atop “gassy” coal mines.
‘It’s like feeling the arms of your creator just wrapped around you’: a visit to a special healing Shabbat
Members of Temple Emanu-El in Birmingham gathered recently for their traditional Friday Shabbat service. But this particular service was different, as could be seen by all the people dressed in their finest pink.
Space Command is coming to Huntsville. What might that mean for first-time homebuyers
While Huntsville has been a more affordable market than other growing cities, what’s it been like for those looking for their first home?
Colorado says relocation of Space Command to Alabama is ‘punishment’ for mail-in voting
The litigation announced by Colorado Attorney General Phil Weiser asks a federal judge to block the move as unconstitutional.
Breaking down Alabama’s CHOOSE Act
It’s been a year since Alabama legislators passed the CHOOSE Act allowing families to apply for state funds to use towards homeschool expenses and tuition for participating private schools. The Alabama Daily News’ education reporter Trisha Powell Crain has been diving into how the funds are being used. WBHM’s Andrew Gelderman sat down with her to talk about what we’re seeing so far.
