Federal Reserve Governor Lisa Cook’s attorney, Abbe Lowell, introduced on Tuesday he is submitting a lawsuit to problem President Donald Trump’s attempt to fire her on Monday night.
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” he stated in a press release despatched to NCS.
The announcement got here hours after Trump posted on social media a letter addressed to Cook informing her that he had adequate “cause” to fire her. Later on Tuesday, the president instructed reporters that he would abide by a court docket determination.
Cook has lately come underneath fire by Trump and members of his administration for allegedly committing mortgage fraud. She has not been charged with any wrongdoing, nonetheless. Cook’s attorney can be representing New York Attorney General Letitia James, who’s the topic of an FBI probe centered on potential mortgage fraud as nicely.
Lowell has represented a number of different high-profile purchasers over the years, together with Trump’s daughter Ivanka and her husband, Jared Kushner, over their use of private messaging providers for official White House enterprise. He additionally represented former President Joe Biden’s son, Hunter, over tax-related costs.
Trump, in his Monday letter to Cook, wrote “I have determined that there is sufficient cause to remove you from your position.”
“At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator,” Trump added in his letter.
Last week, Cook stated in a press release she wouldn’t be “bullied to step down” and that she was dedicated to “gathering the accurate information to answer any legitimate questions and provide the facts.”
She reiterated her intent to keep on the Fed’s board Monday night time after Trump posted his letter.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook stated in assertion her attorneys shared with NCS Monday night time. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
In the Fed’s 111 yr historical past, no member of its board has been fired by a president. The legality of Trump’s attempt to fire Cook is unclear.
The Federal Reserve Act specifies {that a} president might solely take away members of the Fed’s board “for cause” – although what deserves a for-cause firing has not been explicitly outlined.
This is a growing story and will be up to date.