{"id":4269,"date":"2025-08-26T16:27:00","date_gmt":"2025-08-26T21:27:00","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2025\/08\/26\/fired-fed-board-member-to-sue-trump-to-stay-in-role-2\/"},"modified":"2025-08-26T16:27:00","modified_gmt":"2025-08-26T21:27:00","slug":"fired-fed-board-member-to-sue-trump-to-stay-in-role-2","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2025\/08\/26\/fired-fed-board-member-to-sue-trump-to-stay-in-role-2\/","title":{"rendered":"Fired Fed board member to sue Trump to stay in role"},"content":{"rendered":"

\"Federal<\/p>\n

Federal Reserve Chair Jerome Powell administers the oath of office to Lisa Cook to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022, in Washington, D.C. (Photo by Drew Angerer\/Getty Images)<\/p>\n

WASHINGTON \u2014 Federal Reserve Governor Lisa Cook will challenge her removal, her attorney said Tuesday, arguing President Donald Trump \u201chas no authority\u201d to fire her.<\/p>\n

Trump announced late Monday that he would fire Cook, the first Black woman to serve on the Federal Reserve Board, over allegations that she falsified documents to obtain a favorable mortgage rate. She has not been charged with a crime.\u00a0<\/p>\n

Cook has consistently voted not to lower interest rates, rejecting requests Trump has made of the independent central banking board.<\/p>\n

Cook\u2019s attorney, Abbe David Lowell of Lowell & Associates, said in a statement to States Newsroom that she would sue to block the firing. Former president Joe Biden appointed Cook in 2022. Her term ends in 2038.<\/p>\n

\u201cPresident Trump has no authority to remove Federal Reserve Governor Lisa Cook,\u201d Lowell said. \u201cHis attempt to fire her, based solely on a referral letter, lacks any factual or legal basis.\u201d<\/p>\n

Bill Pulte, the director of the Federal Housing Finance Agency, referred Cook\u2019s mortgage application to the Department of Justice for criminal prosecution. Pulte has made similar accusations against political enemies of the president.<\/p>\n

Pulte has accused New York Attorney General Letitia James, who investigated Trump\u2019s business dealings and won a finding of fraud in state court, and California U.S. Sen. Adam Schiff, who led the investigation into Trump\u2019s first impeachment inquiry, of mortgage fraud.<\/p>\n

Trump posted a letter\u00a0on social media<\/a>, arguing that the allegations of Cook\u2019s mortgage fraud had called \u201cinto question your competence and trustworthiness as a financial regulator.\u201d\u00a0<\/p>\n

He said the Federal Reserve Act gave him the authority to dismiss a governor for gross misconduct.\u00a0<\/p>\n

Trump\u2019s fight with Fed<\/h4>\n

The president defended his decision to dismiss Cook to reporters during a more-than-three-hour Cabinet meeting.\u00a0<\/p>\n

\u201cWe need people that are 100% on board,\u201d Trump said, adding that he\u2019s already considering someone else for the job.<\/p>\n

Cook is not the only Federal Reserve Board member Trump has trained his criticism on. He has long gone after Federal Reserve Chair\u00a0Jerome H. Powell for not lowering interest rates.\u00a0<\/p>\n

Trump has pushed for lower interest rates to boost the economy, but rates have remained lower amid concerns that the president\u2019s tariffs will produce price hikes.\u00a0<\/p>\n

\u201cI think we have to have lower interest rates,\u201d Trump said Tuesday.\u00a0<\/p>\n

Dems defend Fed independence<\/h4>\n

The dismissal has drawn outrage from economists and Democrats, including the chair of the Congressional Black Caucus, Yvette D. Clarke of New York.<\/p>\n

\u201cPresident Trump is attempting to oust Dr. Lisa Cook \u2014 the first Black woman to serve on the Federal Reserve Board \u2014 with no credible evidence of wrongdoing,\u201d she said in a statement.<\/p>\n

\u201cLet\u2019s be clear: this is a racist, misogynistic, and unlawful attack on the integrity and independence of the Federal Reserve,\u201d\u00a0Clarke said. \u201cIt is a dangerous attempt to politicize and exert control over the central bank \u2014 one that will only continue to damage the economy, harm hardworking Americans, and undermine our credibility on the world stage.\u201d<\/p>\n

Heather Boushey, a top economist under the Biden administration, said in a statement that Trump\u2019s move to fire Cook undermines the independence of the Federal Reserve.\u00a0<\/p>\n

\u201cIt is clear from his actions that he does not believe he is bound by rule of law, but can \u2014 and will \u2014 intimidate experts to bend to his own ends,\u201d Boushey said.<\/p>\n

Senate Minority Leader Chuck Schumer said in a late Monday statement that any attempt to fire Cook \u201cshreds the independence of the Fed and puts every American\u2019s savings and mortgage at risk.\u201d<\/p>\n

\u201cThis brazen power grab must be stopped by the courts before Trump does permanent damage to national, state, and local economies,\u201d Schumer said. \u201cAnd if the economy comes crashing down, if families lose their savings and Main Street pays the price, Donald Trump will own every ounce of the wreckage and devastation families feel.\u201d<\/p>\n

The top Democrat on the House Ways and Means Committee, Richard Neal of Massachusetts, slammed the president, calling Cook\u2019s firing unlawful.\u00a0<\/p>\n

\u201cPresident Trump\u2019s illegal removal of Federal Reserve Governor Lisa Cook is (an) economic assault,\u201d Neal said in a statement. \u201cInstead of taking responsibility for his own economic failures, he\u2019s manufacturing a villain to blame. As seen around the world, politicizing the central bank means rampant inflation, higher mortgage rates, unstable retirement accounts, and more uncertainty for the people. All of which will threaten the financial security of every American.\u201d\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

Federal Reserve Chair Jerome Powell administers the oath of office to Lisa Cook to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022, in Washington, D.C. (Photo by Drew Angerer\/Getty Images) WASHINGTON \u2014…<\/p>\n","protected":false},"author":2,"featured_media":4270,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nFired Fed board member to sue Trump to stay in role - WestplexNews.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/westplexnews.com\/index.php\/2025\/08\/26\/fired-fed-board-member-to-sue-trump-to-stay-in-role-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fired Fed board member to sue Trump to stay in role - WestplexNews.com\" \/>\n<meta property=\"og:description\" content=\"Federal Reserve Chair Jerome Powell administers the oath of office to Lisa Cook to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022, in Washington, D.C. 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