Fed responds to Trump effort to fire Lisa Cook
Source: CNBC
Published Tue, Aug 26 2025 3:10 PM EDT Updated 12 Min Ago
The Federal Reserve on Tuesday said it would abide by any court decision on whether President Donald Trump has the legal authority to fire Board of Governors member Lisa Cook.
The Fed, in a statement from a spokesperson, noted that Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System.
The statement was the Feds first response to Trumps announcement on Monday night that he was removing Cook as Fed governor because of allegations she committed mortgage fraud. The spokesperson did not explicitly criticize Trump for trying to remove Cook.
But the statement pointedly noted that Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only for cause. Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people, the statement said.
Read more: https://www.cnbc.com/2025/08/26/trump-fed-cook-respond-court.html

Karasu
(2,003 posts)to fire.
MissouriDem47
(278 posts)is going to have to charge her and take her to court. Good, rack up another loss for TACO.
newdeal2
(4,070 posts)Even if its proven true, I dont understand what it has to do with her job performance or how she got the job.
It seems like a separate issue entirely.
TomSlick
(12,716 posts)Importantly, her mortgage holder has not made the allegation.
Mortgage fraud is the Trump administrations current go-to when they want to accuse someone of something.
I would hope that a baseless allegation will not be found to be "just cause."
FBaggins
(28,431 posts)The claimed behavior is a felony - and one that is clearly related to her job (since the mortgage(s) would be part of the financial system that she oversees). That would pretty clearly constitute "cause" for her firing (if, ironically, not enough to block someone from the presidency)...
... but she hasn't been indicted (let alone convicted) of that crime. So it's a tougher sell.
WokeAintWhatIAm
(25 posts)But investigations and the inconvenience of answering questions is to intimidate and cause less critical process thinkers to believe it because it is said (on TV, on media). We have to apply more critical thinking in time of misinformation and distraction.
WokeAintWhatIAm
(25 posts)Guilt, an allegation is an accusation.
jgmiller
(641 posts)He wants anyone else that might think they want to oppose him to be worried that Bondi will dredge up a jay walking offense 30 years ago and use it again them.
Attilatheblond
(7,259 posts)particularly black women who have the courage so many white men seem to lack.
Bayard
(26,974 posts)He just can't abide that fact.
Response to jgmiller (Reply #3)
Bayard This message was self-deleted by its author.
calimary
(87,834 posts)That's the donald's not-so-secret weapon.
MLWR
(535 posts)as having no merit, she needs to sue him for defamation and for bringing this suit against her for political harrassment.
iluvtennis
(21,356 posts)BidenRocks
(2,205 posts)Chump is guilty of sex crimes.
Cook should sue for slander and defamation.
I don't care if you are the president.
TomSlick
(12,716 posts)BidenRocks
(2,205 posts)Pot, kettle!
She must have an impeccable record.
She's better than chump who is a (not enough words).
Capperdan
(522 posts)SCOTUS told him a few months ago he can't touch the Fed Reserve
FBaggins
(28,431 posts)When SCOTUS allowed him to fire two members of the Labor board a few weeks ago they pointed out that the ruling did not mean that he could fire Powell just because he wasn't in line with executive policy preferences.
But that has little to nothing to do with whether or not he can fire a fed governor "for cause"... which is clearly allowable within the law that created the fed in the first place.
The question in this one almost certainly comes down to whether or not "cause" can include an accusation of a crime without charges (let alone conviction)... and whether or not she actually did what she is accused of.