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lite.cnn.com - on gopher - inofficial |
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ARTICLE VIEW: |
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Fed Governor Cook’s attorney says he will file suit over Trump’s |
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attempt to fire her |
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By Elisabeth Buchwald, CNN |
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Updated: |
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3:31 PM EDT, Tue August 26, 2025 |
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Source: CNN |
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Federal Reserve Governor Lisa Cook’s attorney, Abbe Lowell, announced |
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on Tuesday he is filing a lawsuit to challenge on Monday evening. |
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“President Trump has no authority to remove Federal Reserve Governor |
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Lisa Cook. His attempt to fire her, based solely on a referral letter, |
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lacks any factual or legal basis. We will be filing a lawsuit |
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challenging this illegal action,” he said in a statement sent to CNN. |
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The announcement came hours after Trump posted on social media a letter |
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addressed to Cook informing her that he had sufficient “cause” to |
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fire her. Later on Tuesday, the president told reporters that he would |
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abide by a court decision. |
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Cook has recently come under fire by Trump and members of his |
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administration for allegedly committing mortgage fraud. She has not |
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been charged with any wrongdoing, however. Cook’s attorney is also |
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representing New York Attorney General Letitia James, who is the |
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subject of an FBI probe focused on potential mortgage fraud as well. |
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Lowell has represented several other high-profile clients over the |
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years, including Trump’s daughter Ivanka and her husband, Jared |
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Kushner, over their services for official White House business. He also |
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represented former President Joe Biden’s son, Hunter, over |
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tax-related charges. |
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Trump, in his Monday letter to Cook, wrote “I have determined that |
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there is sufficient cause to remove you from your position.” |
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“At a minimum, the conduct at issue exhibits the sort of gross |
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negligence in financial transactions that calls into question your |
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competence and trustworthiness as a financial regulator,” Trump added |
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in his letter. |
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, Cook said in a statement she would not be “bullied to step down” |
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and that she was committed to “gathering the accurate information to |
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answer any legitimate questions and provide the facts.” |
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She reiterated her intent to stay on the Fed’s board Monday night |
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after Trump posted his letter. |
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“President Trump purported to fire me ‘for cause’ when no cause |
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exists under the law, and he has no authority to do so,” Cook said in |
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statement her attorneys shared with CNN Monday night. “I will not |
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resign. I will continue to carry out my duties to help the American |
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economy as I have been doing since 2022.” |
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In the Fed’s 111 year history, no member of its board has been fired |
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by a president. The legality of Trump’s attempt to fire Cook is |
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unclear. |
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The Federal Reserve Act specifies that a president may only remove |
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members of the Fed’s board “for cause” – though what merits a |
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for-cause firing has not been explicitly defined. |
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This is a developing story and will be updated. |
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