Lisa Cook, governor of the US Federal Reserve, arrives for the morning session of the Kansas City Federal Reserve’s Jackson Hole Economic Policy Symposium in Moran, Wyoming, US, on Saturday, Aug. 23, 2025.
David Paul Morris | Bloomberg | Getty Images
The Federal Reserve on Tuesday mentioned it might abide by any court docket choice on whether or not President Donald Trump has the authorized authority to fire Board of Governors member Lisa Cook.
The Fed, in an announcement from a spokesperson, famous 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 assertion was the Fed’s first response to Trump’s announcement on Monday evening that he was eradicating Cook as Fed governor due to allegations she committed mortgage fraud.
The spokesperson didn’t explicitly criticize Trump for attempting to take away Cook.
But the assertion pointedly famous 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 assertion mentioned.
Trump individually informed reporters on Tuesday that he would abide by any court docket choice on Cook’s destiny on the Fed.
“I abide by the court, yeah, I abide by the court,” he mentioned, whereas additionally predicting that the Fed’s board would quickly be comprised by a majority of his appointees after he selects Cook’s replacement.
If Trump positive factors a majority of appointees, he might need higher success at getting the Fed to decrease rates of interest sharply, as he has repeatedly demanded.
Any federal court docket problem by Cook to her termination is probably going to finish with the Supreme Court issuing the ultimate phrase on the dispute.
In the assertion Tuesday, the Fed spokesperson mentioned, “The Federal Reserve System was established by Congress to carry out its statutory mandates — including promoting maximum employment, stable prices, and a well-functioning financial system.”
“The Federal Reserve will continue to carry out its duties as established by law,” the spokesperson mentioned.
“As always, the Federal Reserve will abide by any court decision,” they mentioned.
“The Federal Reserve reaffirms its commitment to transparency, accountability, and independence in the service of American families, communities, and businesses.”
Cook’s lawyer, Abbe Lowell, mentioned Tuesday that Trump “has no authority to remove” Cook.
“His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis,” Lowell mentioned. “We will be filing a lawsuit challenging this illegal action.”
Cook mentioned Monday evening that she would maintain working on the Fed regardless of Trump’s declare he had the facility to take away her.
The Fed didn’t reply to CNBC’s question about whether or not Cook was working Tuesday at the central bank’s headquarters in Washington, D.C., or remotely.
— CNBC’s Erin Doherty contributed to this story.