Cook v. Trump

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Cook v. Trump, et al.
Seal of the U.S. District Court for the District of Columbia.png
Court United States District Court for the District of Columbia
Full case name Lisa D. Cook v. Donald J. Trump
(in his capacity as president of the United States),
Board of Governors of the Federal Reserve System,
and Jerome H. Powell
(in his capacity as Chair of the Board of Governors of the Federal Reserve)
StartedAugust 28, 2025
Citation1:25-cv-02903
Court membership
Judge sitting Jia M. Cobb

Lisa Cook v. Donald J. Trump, et al. is a lawsuit brought by Lisa Cook, a member of the Federal Reserve Board of Governors, against U.S. president Donald Trump, the board, and its chairman, Jerome Powell. Cook contended that her "for cause" removal, executed by Trump as president, was not justified.

Contents

Background

Removal of Lisa Cook

In January 2021, then-President Joe Biden nominated Lisa Cook to serve on the Federal Reserve Board of Governors. [1] She was confirmed in May 2022. As a member of the board, Cook has consistently voted with its chairman, Jerome Powell, particularly in deciding to stay interest rates in the aftermath of the 2021–2023 inflation surge. [2]

On August 15, 2025, Federal Housing Finance Agency director Bill Pulte accused Cook of mortgage fraud, saying she claimed two different homes as her main residence in 2021 to get better loan terms. Pulte said he submitted a criminal referral to the Department of Justice. [3] Pulte had already made similar accusations against two other political adversaries of President Donald Trump, namely New York Attorney General Letitia James and Senator Adam Schiff. [4]

On August 20, Trump posted on Truth Social calling for Cook's resignation. [5] Later that day, Cook rejected the demand, saying she would not be pressured to leave her post over "some questions raised in a tweet" and promised "to take any questions about [her] financial history seriously as a member of the Federal Reserve". [6]

On August 25, President Trump announced that he fired Cook because of the allegations of mortgage fraud. [7] [8] In a response, Cook said "President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so." Cook's attorney, Abbe Lowell, said that: "President Trump has taken to social media to once again 'fire by tweet' and once again his reflex to bully is flawed and his demands lack any proper process, basis or legal authority ... We will take whatever actions are needed to prevent his attempted illegal action". [9] In the Federal Reserve's 112 years of operation, the attempted firing of Cook is the first time a president has attempted to fire a governor. [10]

"For cause" removal

The Federal Reserve Act allows a president to remove a member of the Federal Reserve Board of Governors for cause, an ambiguous term. Prior interpretations of "for cause" statutes involve inefficiency, neglect of duty, or malfeasance. [11]

Lawsuit

On August 28, 2025, Cook sued Trump, the Board of Governors, and Jerome Powell, [12] [13] arguing that Trump lacked authority to dismiss her. [14] [15] She requested that a judge issue a preliminary injunction to retain her position and "A declaration that President Trump’s August 25, 2025 purported firing of Governor Cook is unlawful and void and that Governor Cook remains an active member of the Board of Governors of the Federal Reserve". [16] [13] Bloomberg News described the lawsuit as the beginning of "a historic fight" over the Federal Reserve's independence. [16] Hours later, judge Jia M. Cobb scheduled an initial hearing on the injunction for the following day. [17]

At the hearing on August 29, Cook's legal team accused the administration of waging "an obvious smear campaign" and making "vague, unsubstantiated allegations". The plaintiff requested a temporary restraining order. Judge Cobb did not make a ruling on the request at this hearing. [18]

References

  1. ↑ Smialek 2023.
  2. ↑ "Who Is Lisa Cook, the Fed Governor Trump Says 'Must Resign'?". The Wall Street Journal.
  3. ↑ "Trump says Fed Governor Lisa Cook 'must resign' after William Pulte alleges mortgage fraud". NBC News. August 20, 2025. Retrieved August 21, 2025.
  4. ↑ Nguyen, Danny (August 21, 2025). "Meet the Trump housing official leading probes into the president's foes". POLITICO. Retrieved August 26, 2025.
  5. ↑ "President Steps Up Attack on Fed as He Demands a Governor Resign". August 20, 2025. Retrieved August 21, 2025.
  6. ↑ Mena, Bryan (August 20, 2025). "Trump is pressuring yet another top Fed official to resign, but she says she won't be 'bullied'". CNN. Retrieved August 21, 2025.
  7. ↑ Horsley, Scott (August 25, 2025). "Trump seeks to fire Fed governor Lisa Cook". NPR. Retrieved August 26, 2025.
  8. ↑ Elisabeth Buchwald; Bryan Mena (August 26, 2025). "Lisa Cook: Trump says he has fired Fed governor, escalating his battle against the central bank". CNN. Retrieved August 26, 2025.
  9. ↑ Doherty, Erin; Mangan, Dan (August 25, 2025). "Trump tells Fed's Lisa Cook she's fired; she says 'he has no authority to do so'". CNBC. Retrieved August 26, 2025.
  10. ↑ Rugaber, Christopher (August 28, 2025). "Federal Reserve Governor Lisa Cook sues the Trump administration to overturn her firing". Associated Press News . Retrieved August 28, 2025.
  11. ↑ Larson & Dolmetsch 2025.
  12. ↑ Wheeler 2025.
  13. 1 2 "Cook v. Trump". CourtListener . August 28, 2025. Retrieved August 28, 2025.
  14. ↑ Romm, Casselman & Smith 2025b.
  15. ↑ Jones, Callum; Aratani, Lauren (August 28, 2025). "Fed governor Lisa Cook sues Trump over his 'illegal attempt' to fire her". The Guardian . Retrieved August 28, 2025.
  16. 1 2 Larson & Voreacos 2025.
  17. ↑ Romm 2025.
  18. ↑ Kopack, Steve (August 29, 2025). "Lisa Cook begins court fight to keep her job at the Fed". NBC News . Retrieved August 29, 2025.

Works cited

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