Lisa Cook challenges firing from Federal Reserve Board, Fed says it will abide by court ruling

The Federal Reserve on Tuesday said that it would abide by a court decision regarding embattled Federal Reserve Governor Lisa Cook, who is legally challenging her termination. 

President Donald Trump on Monday night said he was removing Cook from her position after allegations surfaced that she committed mortgage fraud by listing two residences as her primary residence. However, Cook's legal team is challenging whether Trump has the authority to fire her over the allegations.

Presidents do have the power to fire Federal Reserve Board members for cause, but Cook has not been formally charged with mortgage fraud. 

“President Trump has taken to social media to once again ‘fire by tweet’ and once again his reflex to bully is flawed and his demands lack any proper process, basis or legal authority,” Cook's attorney, Abbe Lowell said, per the Daily Signal. “We will take whatever actions are needed to prevent his attempted illegal action.”

The Federal Reserve told The Hill that it would follow whatever ruling is made by a court.

“Lisa 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,” a spokesperson said. “The Federal Reserve will abide by any court decision.”

Federal Reserve governors are confirmed by the Senate for 14-year terms. Cook was confirmed in 2024, meaning that her term would end in 2038 if allowed to remain in her post.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.