Fed Board Member Cook Files Lawsuit Challenging Trump’s Dismissal Notice

Lawsuit Filed in U.S. District Court in Washington, D.C.
"No Just Cause for Dismissal"

Lisa Cook, a member of the U.S. Federal Reserve Board, has filed a lawsuit in response to President Donald Trump's decision to dismiss her.

AFP Yonhap News

According to foreign media outlets such as Bloomberg News on August 28 (local time), Board Member Cook argued in a complaint submitted to the U.S. District Court for the District of Columbia that President Trump's action to remove her violated the Federal Reserve Act.

The Federal Reserve Act stipulates that a board member can only be dismissed for just cause, and she claims that no such cause exists in her case.

The complaint states, "The circumstances surrounding the attempt to dismiss Board Member Cook indicate that the mortgage-related allegations are merely a pretext," adding, "These suspicions are related to actions that took place before Board Member Cook was confirmed by the Senate, and have never been formally investigated or substantiated. Therefore, these allegations cannot constitute grounds for dismissal under the relevant law."

Cook also requested a court injunction to block the effectiveness of President Trump's dismissal order. She emphasized that this measure is essential to maintain the current structure of the Federal Reserve and to protect the public interest.

Previously, on August 25, President Trump publicly released a letter notifying Board Member Cook of her dismissal through his own social networking service, Truth Social. He cited allegations that Cook purchased a house in Georgia, listed it as a "residence" to receive favorable loan terms, and then converted it to a rental property as the grounds for her dismissal. This action marks the first time in the Federal Reserve's 112-year history that a sitting board member has been dismissed by a president.

The president can only dismiss a Federal Reserve board member for just cause, which has generally been interpreted to mean illegal conduct or neglect of duty.

In connection with this incident, there is growing concern both inside and outside the Federal Reserve that President Trump is openly seeking to restructure the Fed to force interest rate cuts, thereby undermining the independence of the central bank.