Federal Reserve Governor Lisa Cook is preparing to take legal action against former President Donald Trump after he issued an order seeking her removal from the central bank, sources familiar with the matter said Tuesday.
Cook, who was confirmed in 2022 and is the first Black woman to serve on the Fed’s Board of Governors, is expected to challenge the move as unlawful, arguing that Federal Reserve governors can only be removed “for cause” under federal law, not at the discretion of the president.
Cook is said to have been accused of being “too political” and obstructing his administration’s economic agenda by Trump, who has been at odds with the Fed over its policies for a long time. His order has already sparked controversy, with economists and legal experts warning that such an attempt to oust a sitting governor would undermine the central bank’s independence.
One former Fed official stated, “Presidential interference in the Federal Reserve sets a dangerous precedent.” “The Fed was designed to be insulated from politics so it can make decisions in the best interest of the economy, not the White House.”
Cook’s legal team is expected to file suit in federal court within days, setting up a potentially historic battle over the limits of presidential power and the independence of the U.S. central bank.
The White House has not commented on the pending litigation.
