Live updates: Federal Reserve Governor Lisa Cook will sue Trump administration to keep her job
President Donald Trump said Monday night that he’s firing Federal Reserve Governor Lisa Cook, an unprecedented move that would constitute a sharp escalation in his battle to exert greater control over what has long been considered an institution independent from day-to-day politics.
Trump said in a letter posted on his Truth Social platform that he is removing Cook effective immediately because of allegations that she committed mortgage fraud.
Cook’s lawyer, Abbe Lowell, said 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. We will be filing a lawsuit challenging this illegal action.”
Asked about that during his Cabinet meeting, Trump was dismissive, offering, “You always have legal fights.”
What to know about Cook:
- How long has Cook served as a Fed Governor? Cook was appointed to the Fed’s board by President Joe Biden in 2022. Her nomination was opposed by most Senate Republicans, and she was approved on a 50-50 vote with the tie broken by then-Vice President Kamala Harris.
- What does a Fed Governor do? Fed governors vote on the central bank’s interest rate decisions — as well as other issues of financial regulation. Board members are appointed by the president and confirmed by the Senate. But unlike cabinet secretaries — who serve at the pleasure of the president, for example — Fed governors take on 14-year terms that are staggered in an effort to insulate the Fed from political influence.
- What did Cook do prior to her role at the Fed? Cook has taught economics and international relations at Michigan State University, and was previously also on the faculty of Harvard University’s Kennedy School of Government. She has received degrees from Oxford University, Spelman College and the University of California, Berkeley. Some of her most well-known research has focused on the impact of racial violence on African-American innovation, and consequently wider economic growth.