Fed Governor Lisa Cook filed a lawsuit against President Trump on Thursday in a bid to keep her position. Last week, Trump attempted to fire Cook in an unprecedented move, claiming that she committed mortgage fraud by listing two separate properties as her primary residence. Federal Housing Finance Agency (FHFA) Director Bill Pulte first raised concerns about the alleged fraud. Cook has argued that Trump has no legal grounds or cause to remove her from her position.
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Furthermore, the lawsuit states that Trump’s firing undermines the Federal Reserve Act, “which explicitly requires a showing of ‘cause’ for a Governor’s removal, which an unsubstantiated allegation about private mortgage applications submitted by Governor Cook prior to her Senate confirmation is not.”
Fed and Powell Named in Lawsuit
Cook and her lawyer filed the litigation in a Washington, D.C., federal court and named the Fed Board of Governors and Chairman Jerome Powell as defendants as well. They are being sued to the extent that they are able to “effectuate President Trump’s purported termination of Governor Cook.”
The lawsuit sets the stage for a lengthy legal battle that could ultimately end up on the Supreme Court’s desk.
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