FILE PHOTO: Federal Reserve Governor Lisa Cook attends the Federal Reserve Bank of Kansas City's 2025 Jackson Hole economic symposium, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy" in Jackson Hole, Wyoming, U.S., August 23, 2025. REUTERS/Jim Urquhart/File Photo
(Reuters) -Federal Reserve Governor Lisa Cook filed a lawsuit on Thursday claiming U.S. President Donald Trump has no power to remove her from office, setting up a legal battle that could reset long-established norms for the U.S. central bank's independence.
Cook's lawsuit said Trump violated a federal law allowing him to remove a Fed governor only "for cause" when the Republican president took the unprecedented step on August 25 of announcing he would fire her. Trump has accused Cook of committing mortgage fraud in 2021, a year before she joined the central bank's governing body.
