Federal Reserve Governor Lisa Cook Launches Landmark Lawsuit Against Donald Trump Over Alleged Firing Attempt
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- August 29, 2025
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In a bold move that sends ripples through Washington's political and legal circles, Federal Reserve Governor Lisa Cook has filed a lawsuit against former President Donald Trump. Cook alleges that Trump unlawfully attempted to fire her from her position on the Fed's board in 2020, even though she was not formally a Fed governor at the time.
This legal challenge directly confronts the scope of presidential power over independent agencies, particularly the nation's central bank.
The lawsuit, filed in the U.S. District Court for the District of Columbia, centers on the assertion that Trump's actions violated Cook's Fifth Amendment due process rights.
Cook’s legal team argues that the Federal Reserve Act explicitly requires 'cause' for the removal of a Fed governor, a condition they claim was entirely absent in Trump's alleged efforts. Her lawyers emphasize that the independence of the Federal Reserve is paramount, serving as a crucial bulwark against political interference in economic policy.
According to the complaint, Trump's administration, frustrated with the Fed's monetary policy decisions under then-Chair Jerome Powell, sought to remove several members of the board.
Cook, an economist who was then serving as an outside advisor, was reportedly targeted for her perceived alignment with the Fed's leadership. Although Trump never formally fired her—likely because she was not yet a confirmed governor—the lawsuit contends that his attempts created a chilling effect and undermined the integrity of the institution.
Cook, who made history in 2022 as the first Black woman to serve on the Fed's Board of Governors after being nominated by President Joe Biden, is seeking a declaration that Trump's actions were illegal and a permanent injunction preventing future presidents from similar overreaches.
While she is not seeking monetary damages, the case's implications are profound. It could establish critical legal precedents regarding the independence of the Federal Reserve and other vital government agencies from executive branch pressures.
The legal battle is poised to reignite debates about the sanctity of the Fed's independence, a principle widely regarded as essential for stable economic management.
Trump's presidency was marked by frequent public criticisms of the Federal Reserve and Chair Powell, often demanding lower interest rates. This lawsuit brings those past tensions back into sharp focus, transforming them into a significant constitutional challenge that could reshape the relationship between the White House and independent federal bodies for years to come.
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