Federal Reserve governor Lisa Cook is set to file a lawsuit challenging her removal initiated by President Donald Trump. Cook's lawyer, Abbe David Lowell, asserted that Trump does not have the legal authority to terminate her position. The president accused Cook of making false statements regarding her mortgage, stating that he believed he had sufficient reason to dismiss her.
Trump’s actions come amid increasing scrutiny of the Federal Reserve, especially its chairman Jerome Powell, as he pushes for lower interest rates. If Cook is removed, she could be succeeded by a candidate more aligned with Trump's economic policies.
Cook's lawsuit marks a significant escalation in tensions between the executive branch and the central bank. In her statement, she affirmed her intention to remain in her position, rejecting Trump’s claims and affirming her commitment to the Federal Reserve's role.
Experts suggest the lawsuit could prompt legal debates regarding the US presidency's limits in removing Federal Reserve officials—a critical point considering the disconnect that often exists between political ambitions and central bank independence.
