Judge in Lisa Cook case sets hearing for Friday [View all]

Source: CNBC

Published Thu, Aug 28 2025 9:24 AM EDT Updated 1 Min Ago


A judge set a hearing for Friday on Federal Reserve Board Governor Lisa Cook’s request to block President Donald Trump from firing her. The hearing was scheduled hours after Cook filed a lawsuit against Trump challenging his removal of her from the board. The suit, filed in federal court in Washington, D.C., also names Fed Chairman Jerome Powell and the Board of Governors itself as defendants. The case is likely to end up being decided by the Supreme Court.

Trump said Monday that he was removing Cook because of allegations that she committed mortgage fraud by claiming two different properties as her main residence in 2021, before she joined the board. Cook’s attorney called that justification “nakedly pretextual” and argued it would not constitute sufficient cause to remove her even if Trump’s allegations were true, “which they are not.”

“This case challenges President Trump’s unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would the first of its kind in the Board’s history,” the lawyer, Abbe Lowell, wrote in the lawsuit.

“It would subvert the Federal Reserve Act ... which explicitly requires a showing of ‘cause’ for a Governor’s removal, which an unsubstantiated allegation about private mortgage applications submitted by Governor Cook prior to her Senate confirmation is not,” Lowell wrote. The case was assigned to Judge Jia Cobb, who was appointed to the federal bench in late 2021 by former President Joe Biden.

Read more: https://www.cnbc.com/2025/08/28/trump-fed-lisa-cook-lawsuit-powell.html