Federal Reserve Governor Cook filed a lawsuit on the 28th in the Washington District Court, claiming that the Trump administration had no authority to dismiss her, and requested a restraining order from the court to block her removal.
U.S. President Trump announced Cook’s dismissal on the 25th, citing alleged mortgage fraud as the reason.
Cook is the first African American woman to serve as a Federal Reserve Governor. She assumed the position in May 2022, with her term running until 2038. Against the backdrop of Trump's ongoing pressure on the Fed to cut interest rates, Cook's lawsuit has been viewed by U.S. public opinion as a key event for whether the Federal Reserve can maintain its independence.
In the complaint, Cook stated that her dismissal by the Trump administration was “unprecedented and illegal.”
She said that an independent Federal Reserve is essential for economic stability, as the president’s short-term political interests often conflict with sound monetary policy.
Cook asserted that the White House’s allegations had nothing to do with her conduct during her tenure, have not been substantiated, and that she was not given an opportunity to respond. Even if the allegations were true, she argued, they do not constitute grounds for dismissal.
She is seeking a ruling affirming her status as a Federal Reserve Governor so that she can continue to fulfill her responsibilities. She is also asking the court to uphold the independence of Federal Reserve officials as conferred by Congress.
The court will hold the first hearing on the case on the morning of the 29th. The Federal Reserve declined to comment, saying only that it will abide by the court’s decision.