Cook files lawsuit against Trump: Impeachment attempt is unlawful

Tensions between the US Federal Reserve (Fed) and President Donald Trump have reached the courts. After Trump announced that he had fired Fed Board Member Lisa Cook for alleged mortgage fraud, Cook filed a lawsuit in federal court challenging the decision. The lawsuit, filed in federal district court in Washington, emphasized that if Trump's decision is not blocked, it would be a first in the Fed's history.

The lawsuit names President Trump, the Fed Board of Governors, and Fed Chair Jerome Powell as defendants.

"TRUMP'S DECISION IS UNLAWFUL AND INVALID"

The lawsuit noted that the Federal Reserve Act requires "good cause" to be shown for the removal of a board member. Cook's lawyers pointed out that an unsubstantiated allegation regarding mortgage applications he filed before his Senate confirmation did not meet that requirement.

Cook's attorney, Abbe Lowell, previously stated that Trump's impeachment attempt has no factual or legal basis. The lawsuit asks the court to declare Trump's decision "unlawful and invalid" and to allow Cook to remain in his position.

TRUMP'S DECISION AND COOK'S REACTION

President Trump announced Cook's dismissal in a social media post earlier this week, accusing him of "making false statements in mortgage agreements." Trump claimed his decision was based on the Fed Act.

On the other hand, Lisa Cook challenged Trump’s statements, saying, “President Trump claimed he dismissed me for ‘just cause,’ even though there was no legal reason and he had no authority to do so. I will not resign. I will continue to fulfill my duties to help the American economy, as I have done since 2022.”

Source: Decision