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.
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 allegations of fraud against Cook on August 20.
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 more mortgage applications.”
Cook is the first Black woman to serve on the board of what is considered to be the world’s most important central bank.
