Federal Reserve Governor Lisa Cook sued President Trump in federal court in Washington, asking a judge to block his attempt to remove her from the Fed’s Board of Governors. Her complaint says the move lacks the “for cause” basis required by the Federal Reserve Act.
Lisa Cook sues Trump to block her removal from the Fed
Federal Reserve Governor Lisa D. Cook filed a lawsuit in federal court in Washington, D.C., on Aug. 28, 2025, asking a judge to halt President Donald Trump’s attempt to remove her from the Board of Governors. The complaint argues that the president acted unlawfully and without the “for cause” basis required by the Federal Reserve Act.
The filing seeks emergency relief so Cook can continue serving while the case proceeds. The case is widely seen as a test of the Fed’s independence and of the limits of presidential power over officials of the central bank.
The mortgage allegations behind the dispute
Trump announced Cook’s removal in a letter posted on social media, citing allegations, referred to the Justice Department by Federal Housing Finance Agency Director Bill Pulte, that she made false statements on mortgage applications in 2021, before she joined the Fed. The allegations center on her listing more than one property as a primary residence. Cook has not been charged with any crime and has denied wrongdoing, saying the president has no authority to remove her.
Her lawsuit argues that the allegations, which concern conduct before her appointment and have not been proven, do not meet the legal standard for removing a sitting governor.
What “for cause” means
Under the Federal Reserve Act, governors may be removed only “for cause.” The law does not define the term, and courts have not previously ruled on how it applies to a Fed governor. In other contexts, the phrase has generally been understood to cover matters such as inefficiency, neglect of duty or malfeasance in office.
If a court finds that unproven allegations from before her service do not amount to cause, Cook could remain in office. A ruling for the White House could expand presidential authority over the central bank.
Who is Lisa Cook?
Cook, an economist and former Michigan State University professor, joined the Fed Board in 2022. She is the first Black woman to serve as a Federal Reserve governor. Her research has focused on innovation, finance and economic growth.
She was later confirmed to a full 14-year term that runs until 2038. Long, staggered terms are designed to insulate monetary policy from short-term political pressure.
What Cook is asking the court to do
Cook’s complaint seeks a temporary restraining order and then a preliminary injunction to block her removal while the case is litigated, which would keep her on the Board and on the Federal Open Market Committee (FOMC), the body that sets interest rates.
She also asks the court to declare that the president exceeded his authority under the Federal Reserve Act.
Why the case matters for the Fed
Supporters of Fed independence argue that the central bank’s credibility depends on setting interest rates free from political pressure. Trump has repeatedly criticized the Fed and its chair, Jerome Powell, for not cutting interest rates faster, and critics of the removal attempt have said it could give the president more influence over the Board’s composition.
The White House has said the president acted within his authority and had sufficient cause, citing the mortgage allegations and the need for confidence in the integrity of financial regulators.
The legal path ahead
To win a temporary restraining order, Cook must show that she is likely to succeed on the merits, that she would suffer irreparable harm without it, and that the balance of interests and the public interest favor a pause. Any early order can be appealed, and legal experts have said the case could ultimately reach the Supreme Court.
The Supreme Court has expanded presidential power to remove officials at some independent agencies in recent rulings, but in a May 2025 order it signaled that the Federal Reserve may be treated differently, describing it as a uniquely structured entity.
What happens next
The next steps are a briefing schedule and a hearing on Cook’s request for emergency relief. Meanwhile, the Fed’s policy work and scheduled meetings continue. The outcome will help define how far a president can go in removing leaders of the independent central bank.
Source: NPR
