Fed Governor Lisa Cook Sues Trump Over Alleged Unlawful Firing
Fed Governor Lisa Cook Sues Trump Over Alleged Unlawful Firing
Federal Reserve Governor Lisa Cook is taking legal action against former President Donald Trump, challenging his attempt to remove her from office. Cook’s attorney, Abbe Lowell, announced the lawsuit, asserting that Trump’s decision to fire her lacks any legal or factual basis and that he has no authority to do so.
Trump had cited allegations of mortgage fraud against Cook as the reason for her dismissal. White House spokesman Kush Desai stated that the President exercised his lawful authority, claiming there was ’cause’ to remove a governor credibly accused of lying in financial documents from a sensitive position. The Federal Reserve, however, emphasized that governors serve fixed terms and can only be removed ‘for cause,’ a term historically understood to mean malfeasance or dereliction of duty while serving on the board.
The controversy stems from a criminal investigation opened by the Justice Department into Cook, following accusations by Federal Housing Finance Agency Director Bill Pulte. Pulte alleged that Cook made false statements on home mortgage applications for properties in Michigan and Georgia, claiming them as primary residences to potentially secure lower interest rates. These documents would have been signed before her appointment to the Fed. Cook has firmly stated she will not resign and will continue her duties, maintaining that no legal cause for her removal exists.
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