President Trump has attempted to remove Federal Reserve Governor Lisa Cook and her lawyer announced plans to sue to block the action. The legal challenge asserts that the attempted removal rests only on a referral letter and lacks factual or legal basis. The Federal Reserve emphasized governors serve fixed terms and may be removed by the president only "for cause," framing removal protections as vital to protect monetary policy from political influence. The dispute is likely to reach the Supreme Court and could clarify presidential authority over the Fed and the institution's independence.
President Trump has no authority to remove Federal Reserve Governor Lisa Cook,
His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action.
Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only 'for cause,' the central bank said. 'Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people.'
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