❓WHAT HAPPENED: Lisa Cook has filed a lawsuit challenging her removal from the Federal Reserve Board of Governors.
👤WHO WAS INVOLVED: Lisa Cook, President Donald J. Trump, and Federal Reserve Chairman Jerome Powell.
📍WHEN & WHERE: The lawsuit was filed in federal court in the District of Columbia on Thursday, August 28, 2025.
💬KEY QUOTE: “President Trump’s conception of ‘cause’ has no limiting principle. It would allow him to remove any Federal Reserve Board member with whom he disagrees about policy based on chalked up allegations.” — Lisa Cook’s lawsuit
🎯IMPACT: Cook is seeking an emergency injunction that would prevent her removal from the Federal Reserve Board of Governors.
Lisa Cook has filed a lawsuit in federal court against President Donald J. Trump and Federal Reserve Chairman Jerome Powell over her removal from the Federal Reserve Board of Governors. The lawsuit, filed in the District of Columbia, challenges the legality of her firing and asks the District Court for emergency injunctive relief to prevent her removal.
“President Trump’s conception of ‘cause’ has no limiting principle,” the lawsuit contends, adding: “It would allow him to remove any Federal Reserve Board member with whom he disagrees about policy based on chalked up allegations.”
Cook’s lawsuit describes her removal as “unprecedented and illegal” and disputes the allegations of mortgage fraud that were cited as justification for her firing. Her legal team argues that the removal violated the Federal Reserve Act of 1913 and court precedent set in Humphrey’s Executor v. United States, which requires “cause” for such actions. The filing argues that because Cook has not yet been criminally charged, there is no “cause” for her firing.
Additionally, the lawsuit claims that Trump’s actions infringed upon Cook’s Fifth Amendment due process rights and her statutory right to notice and a hearing under the Federal Reserve Act. Cook is seeking an immediate injunction against the firing and her reinstatement to the Board of Governors.
While Cook may initially prevail at the District Court level, many legal scholars argue her case is unlikely to survive appeal as higher courts may be more hesitant to intervene in the executive branch’s determination of what constitutes “cause.”
Image by Brookings Institution.
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