Federal Reserve Board Governor Lisa Cook is refusing to step aside after U.S. President Donald Trump fired her, setting up a legal battle that analysts say is likely to go all the way to the Supreme Court.
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Cook responded to President Trump’s letter firing her from the U.S. central bank with a written statement that reads, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so.”
Cook, who is the first Black woman to serve as a central bank governor in the U.S., added in her statement that: “I will not resign… I will continue to carry out my duties to help the American economy.” She also mentioned that she has hired the lawyer Abbe Lowell to represent her in the Trump firing.
Lawyering Up
In his own statement, Abbe Lowell wrote: “President Trump has taken to social media to once again ‘fire by tweet’ and once again his reflex to bully is flawed and his demands lack any proper process, basis or legal authority… We will take whatever actions are needed to prevent his attempted illegal action.”
Analysts say President Trump’s move to fire Lisa Cook from the central bank is unprecedented and sets up an equally unprecedented legal case. Trump claims to have fired Cook over allegations that she made false statements on mortgage applications. However, Cook has not been charged or convicted of any wrongdoing.
The Trump administration has accused several other public figures it views as adversaries of mortgage fraud, including New York Attorney General Letitia James and California Senator Adam Schiff. The Federal Reserve has not commented publicly on the firing of Cook by President Trump.
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