Federal Reserve governor Lisa Cook sued President Donald Trump on Thursday, the beginning of a landmark legal battle over Trump’s “unprecedented and illegal” efforts to remove her from the central bank and by extension the committee that makes crucial decisions about the nation’s interest rates.
Cook also seeks an “emergency temporary restraining order, to remain in effect until such time as the Court can further consider the merits of her claims.”
In her lawsuit, Cook seeks a “declaration that President Trump’s August 25, 2025 purported firing … is unlawful and void and that Governor Cook remains an active member of the Board of Governors of the Federal Reserve.”
Cook also seeks a declaration from the court that “that an unsubstantiated allegation of mortgage fraud prior to a Governor’s confirmation is not cause for removal.”
Trump has sought to remove her over allegations of mortgage fraud.
The lawsuit comes after Federal Housing Finance Authority Director Bill Pulte leveled fraud allegations against Cook on Aug. 20.
Cook is the first Black woman to serve on the board of what is considered to be the world’s most important central bank.
Under the Federal Reserve Act, the only reason Federal Reserve governors can be removed from their positions is “for cause,” or some kind of wrongdoing. Cook has not been charged with any crime and Trump’s letter to her only said that the administration believes she “may have made false statements on one or more mortgage applications.”
“The ‘for cause’ standard is not defined in the [Federal Reserve Act], but statutes establishing the standard for other independent agencies expressly limit cause to the standard that … there must be a specific finding of ‘inefficiency, neglect of duty, or malfeasance in office,'” Thursday’s filing states.
“President Trump did not purport to remove Governor Cook for ‘inefficiency, neglect of duty, or malfeasance in office,’ or for any actions that were carried out in the course of her official duties.”
Cook’s lawsuit also names the Federal Reserve Board of Governors and Chair Jerome Powell as defendants because the lawsuit says they are required to take action to effectuate a lawful removal order from the president.
The Fed, in a statement on Tuesday, said “Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System. As always, the Federal Reserve will abide by any court decision.”
The Fed did not immediately respond to a comment on Cook’s filed lawsuit on Thursday.
Her lawsuit also says that “an independent Federal Reserve is essential for a stable economy.”
“An independent Federal Reserve also prevents presidential administrations from using monetary policy for self-serving political ends in other ways, such as ensuring the government cannot simply print more money to finance debt. This practice, when unchecked, can lead to economic collapse and hyperinflation,” her case goes on to say.
The lawsuit notes that a recent Supreme Court decision made clear that the Fed is a “uniquely structured, quasi-private entity” that has its own distinct historical tradition.
“Allowing the President to remove members of the Board over policy disagreements would also render illusory the Board’s independence,” the suit adds.
Trump’s attempted removal of Cook and Pulte’s allegations are the latest moves in an unrelenting pressure campaign against the Fed, Powell and now Cook. Trump has sought lower interest rates since before he took office for a second term and has attacked Powell and the Fed’s rate-setting committee on an almost constant basis.
Trump has said the board should be “ashamed” of itself and has fired off dozens more insults at Powell in interviews and on social media, calling him everything from “stupid” to someone who “hates me” and a “low IQ” person.
Cook’s lawsuit cites Trump’s long history of attacks against the Fed and the president’s many threats this year to fire Powell.
Pulte’s allegations against Cook closely echo similar unsubstantiated claims against other top Democrats.
“Each of Director Pulte’s criminal referrals have notably been, at one time or another, political targets of President Trump’s ire prior to any mortgage fraud allegations,” Cook’s lawyers write.
