The Governor of Federal Reserve Lisa Cook submits a lawsuit against Trump administrator after president tries to remove her from the board

Lisa Cook, the Governor of the Federal Reserve, has filed a lawsuit against the Trump administration to challenge the president’s attempt to remove her from office and set the way for an unprecedented legal battle that can test the independence of the US central bank. Independence at stake The lawsuit emphasizes prolonged protection around the Fed’s political independence. The Supreme Court has previously indicated that the removal of “for cause” requires the necessary process. Cook’s case argues that the president’s unilateral decision undermines both her rights and the institutional autonomy of the Fed. “This case is about more than one individual – it is about protecting the independence of the Federal Reserve against improper political interference,” Cook’s legal team said in a statement. First attempt to firing Fed’s 112-year history No president has ever tried to fire a sitting Federal Reserve Governor until President Donald Trump announced the removal of Cook on Monday on his truth group. He mentions the allegations of mortgage fraud dating back to 2021, before her appointment in the Fed board. Legal experts note that presidents under the existing precedent cannot reject Fed officials on policy disputes, but that they can do so “because of matter” – usually defined as misconduct or neglect of duty. Cook was not charged with any crime, nor was she given the opportunity to respond formally to the allegations. Criticism in the White House The shooting comes amid Trump’s repeated public clashes with Fed chairman Jerome Powell and other policymakers because they did not lower interest rates faster. The Fed’s most important short -term rate is 4.3% after a one -point reduction at the end of last year. Powell recently indicated that another rate cut is probably at the upcoming meeting of September 16 to 17. Critics believe that the allegations against Cook could be a pretext to create an opening on the Fed board for a Trump in line. Trump has previously said that he will only appoint officials who support lower rates.