Fed responds to Trump effort to fire Lisa Cook [View all]

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 Fed’s first response to Trump’s 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