Lisa Cook’s lawsuit contests Trump’s authority to remove her from her post, potentially redefining the Federal Reserve’s independence.
Federal Reserve Governor Lisa Cook filed a lawsuit on Thursday claiming US President Donald Trump has no power to remove her from office, setting up a legal battle that could reset long-established norms for the US central bank’s independence.
Cook’s lawsuit said Trump violated a federal law allowing him to remove a Fed governor only “for cause” when the Republican president took the unprecedented step on August 25 of announcing he would fire her.
