US President Donald Trump has fired Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud, amid a potential legal battle with the ousted governor and her lawyers.
Cook was removed from office on Tuesday, with Trump stating that she had committed an “infraction” in securing mortgage loans. However, Cook’s lawyer, Abbe Lowell, claims that Trump has no authority to remove her, as her term runs until January 2038.
The Federal Reserve acknowledged Cook’s potential legal action and said it will abide by any court decision. The board, composed of seven members nominated by the president and confirmed by the Senate, guides the nation’s monetary policy.
Cook was appointed by former President Joe Biden in 2022, becoming the first Black woman to serve on the Fed’s Board of Governors. Trump accused her of claiming two primary residences to secure better mortgage terms, but she has denied any wrongdoing.
The move leaves a seat open on the panel, giving Trump an opportunity to name someone aligned with his financial policy to the Fed. However, Cook and her lawyer argue that Trump’s actions are “illegal” and vow to take action to prevent it.
As the situation unfolds, the Federal Reserve will abide by any court decision, while Cook prepares to challenge Trump’s removal in court.
Source: https://www.foxnews.com/politics/trump-says-hes-always-ready-legal-fight-cook-readies-legal-action