Anadolu: US President Donald Trump’s attempt to remove Fed Governor Lisa Cook is baseless, her attorney told Anadolu on Tuesday, and noted that they will file a lawsuit against his decision.
“We will be filing a lawsuit challenging this illegal action,” said Abbe David Lowell, from Lowell & Associates.
Trump announced he removed Cook from her position in an unprecedented move, citing allegations of mortgage fraud.
In a letter shared Monday through the US social media company Truth Social, Trump told Cook: “You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.”
Lowell said, “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.”
Cook said via her attorney that Trump purported to fire her “for cause” when no cause exists under the law, and he has no authority to take the action.
“I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she added.
The move came after Trump warned Cook last week that he would dismiss her if she did not step down.
Cook, who was nominated to the Fed’s Board of Governors by former President Joe Biden in 2022, has denied any wrongdoing, and said she has “no intention of being bullied to step down.”
The allegations surfaced after Federal Housing Finance Agency chief Bill Pulte, a vocal critic of Fed Chair Jerome Powell, accused her of mortgage fraud and referred the matter to the Justice Department.
Michelle Bowman and Christopher Waller, two of the current seven Fed governors, were appointed by Trump. In 2017, Powell was nominated by Trump to be the Fed chair.
Cook was one of six members of the Board of Directors as of Monday afternoon; Adriana Kugler resigned earlier this month, leaving one position open, and Trump nominated Stephen Miran, chair of the Council of Economic Advisors, to fill Kugler’s position.
If the Senate confirms Miran and Trump is successful in ousting Cook and gets her replacement approved, he will have a four-to-three majority of appointments on the board, giving him the power to influence the central bank’s monetary policy decisions.
