Federal court to hear Fed Governor Lisa Cook's emergency plea against Trump firing

WASHINGTON (TNND) — A federal court is holding a hearing Friday morning on Lisa Cook’s removal from the Federal Reserve.

Cook is arguing for an emergency temporary restraining order against President Donald Trump while she waits for her lawsuit to proceed through the courts.

Cook filed a lawsuit against the Trump administration on Thursday morning, following the president’s attempt to fire her earlier this week.

In a letter shared on Truth Social, Trump said Cook was fired for allegations that she committed mortgage fraud in 2021.

The claim stems from a report from Bill Pulte, director of the Federal Housing Finance Agency.

Cook responded to President Donald Trump, saying he has “no authority” to fire her and no cause under the law.

“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 in a statement via Lowell & Associates. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”

Trump’s move is the first of its kind in the central bank’s 112-year history after he blamed the Fed for taking too long to lower interest rates.

The Supreme Court has signaled that the president can’t fire Fed officials over policy differences, but he can do so “for cause,” typically meaning misconduct or neglect of duty.

Cook’s lawyers argue that it also refers only to conduct while in office. They also say that she was entitled to a hearing and an opportunity to rebut the charges.

The lawsuit states it would subvert the Federal Reserve Act (FRA), “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.”

As a governor, Cook votes on all the Fed’s interest rate decisions and helps oversee bank regulation. The Fed has substantial power over the economy by raising or cutting its key interest rate, which can then influence a broad range of other borrowing costs, including mortgages, car loans, and business loans.

Cook’s lawsuit argues that the claims are just a pretext “in order to effectuate her prompt removal and vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve.”

Editor’s Note:The National News Desk’s Alexx Altman-Devilbiss and the Associated Press contributed to this story.