Lisa Cook Sues Trump Administration Over Unlawful Removal Attempt from Federal Reserve Board Amid Mortgage Fraud Allegations

Federal Reserve Governor Lisa Cook has filed a lawsuit to contest her dismissal from the influential board, following President Donald Trump’s announcement earlier this week that he intended to remove her.

On Monday, Trump shared a letter on social media addressed to Cook, stating his belief that he had grounds for termination of the central bank official. The letter referenced allegations of mortgage fraud initially brought forth by Federal Housing Finance Agency Director Bill Pulte.

The administration has accused Cook of mortgage fraud relating to two properties she owns, both seemingly designated as her primary residences. Similar accusations of mortgage fraud have been leveled against New York Attorney General Letitia James and California Senator Adam Schiff, among other perceived political adversaries of the president.

Investigations into Pulte’s allegations are planned by the Justice Department. As of yet, Cook has not been charged with any wrongdoing.

The legality of Cook’s dismissal may be complex, given Trump’s assertion that he can terminate her for cause despite unproven accusations and an ongoing investigation.

Cook’s legal action sets the stage for a potential high-stakes court battle with significant implications for the Fed and presidential power. In a 24-page complaint filed at a federal court in Washington D.C., Cook’s attorneys argue that Trump is using fraud allegations as a means to circumvent federal law designed to protect her from such presidential interference.

The lawsuit requests the court to rule that Trump’s attempt to remove Cook is illegal and for her to be recognized as an active member of the Federal Reserve. Additionally, it seeks a declaration that “an unsubstantiated allegation of mortgage fraud prior to a Governor’s confirmation is not cause for removal” under federal law.

The case has yet to be assigned to a judge in D.C. This story is ongoing and will be updated as more information becomes available.