GREENSBORO, N.C. — President Donald Trump faces new lawsuit battle after Federal Reserve Governor Lisa Cook’s attorney announced legal action challenging Trump’s attempt to remove her from office.
On Monday evening, Trump released a letter on social media stating that he had “sufficient cause” to fire Cook, citing what he described as gross negligence in financial transactions. Hours later, Cook’s attorney, Abbe Lowell, strongly rejected the move, calling it unlawful and confirming plans to take the matter to court.
“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,” Lowell said in a statement. “We will be filing a lawsuit challenging this illegal action.”
Trump’s Letter and Cook’s Response
Trump’s letter to Cook accused her of misconduct related to financial transactions, implying that her actions raised questions about her competence as a financial regulator. However, Cook has not been charged with any wrongdoing. She has also denied the allegations, vowing not to step down.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said Monday night. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Cook also stated last week that she “would not be bullied to step down” and reaffirmed her commitment to her role at the Federal Reserve.
Legal and Historical Context – Donald Trump Faces New Lawsuit
This lawsuit could mark a historic legal battle, as in the 111-year history of the Federal Reserve, no president has ever successfully fired a sitting member of the Fed’s board. The Federal Reserve Act specifies that a president may only remove members “for cause,” but the exact definition of what qualifies as cause has never been tested in court.
Lowell, a prominent defense attorney known for representing high-profile clients such as Ivanka Trump, Jared Kushner, and Hunter Biden, said the courts will now determine the legality of Trump’s unprecedented move.
Trump told reporters Tuesday that he would abide by the court’s decision.
This is a developing story and will be updated as more details emerge.
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Written by: Daniel Olafamoye, Greensboro NC News.
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