On August 20, Trump posted onTruth Social calling for Cook's resignation.[13] Later that day, Cook rejected the demand, saying she would not be pressured to leave her post over "some questions raised in a tweet" and promised "to take any questions about [her] financial history seriously as a member of the Federal Reserve".[14]
On August 25, President Trump announced that he fired Cook because of the allegations of mortgage fraud.[15][16] In a response, Cook said "President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so." Cook's attorney,Abbe Lowell, said that: "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... We will take whatever actions are needed to prevent his attempted illegal action".[17] In the Federal Reserve's112 years of operation, the attempted firing of Cook is the first time a president has attempted to fire a governor.[18]The New York Times called Cook's case "a landmark legal battle" that "will have far-reaching consequences", and predicted that it was ultimately bound for theSupreme Court.[8]
During aCNBC interview on September 4, Pulte was questioned by journalistAndrew Ross Sorkin about perceptions of "political weaponization". Sorkin stated that "If, for example, the tip came from inside the administration, or came from even inside your agency, with somebody who works for you... then that creates the perception issue".[19] Pulte refused to clarify if the tip about alleged mortgage fraud had come from within the government or from the general public. Pulte also refused to comment when asked if his agency would be reviewing the records of RepublicanKen Paxton, the attorney general of Texas, who has declared three separate Texas homes as primary residences in mortgage documents, according to reporting byThe New York Times.[19][20] Multiple members ofTrump's second cabinet have also held dual primary residence mortgages.[21][22]
On September 12,Reuters published an analysis of "loan [and] job-vetting forms" that were submitted by Cook in 2021, stating that the declarations made in both documents "appear to undercut fraud claims".[23] A loan estimate submitted for Cook's Atlanta home shows that she had "declared the property as a 'vacation home'", rather than a principal residence. Cook's national security clearance form (SF-86), submitted during the hiring process for her role at the Federal Reserve, shows that she had "declared the Atlanta property as a '2nd home.'" Property records reviewed byReuters also revealed that Cook never sought a primary residence tax exemption in Georgia.[23] These documents were independently verified byThe Washington Post and theFinancial Times, with thePost additionally noting that "Cook's financial disclosure forms indicate she has a loan against a property in Atlanta with an interest rate of 3.25 percent, which was slightly higher than prevailing rates for a primary residence at the time she took on the mortgage."[24][25]The New York Times wrote that the documents "appear to add to the uncertainty" regarding accusations made by the Trump administration, raising "the possibility that Ms. Cook did not try to deceive lenders about one of the properties when she purchased it before joining the board of the nation's central bank in 2022."[26] On September 15,Reuters reported that a request made to thetax assessor ofAnn Arbor, Michigan did not reveal any violation ofprimary residence rules related totax exemptions for Cook's property in the city.[27]
TheFederal Reserve Act allows a president to remove a member of the Federal Reserve Board of Governors for cause, an ambiguous term.[28] Prior interpretations of "for cause" statutes involve inefficiency, neglect of duty, or malfeasance.[29][verification needed]
On September 2, 2025, anopen letter signed by 593 economists and severalNobel laureates was released; it defendedFederal Reserve independence and warned that firing Cook would erode trust in "one of America's most important institutions", stating in part that "Good economic policy requires credible monetary institutions. Credible monetary institutions, in turn, require the independence of the Federal Reserve."[30][31][32] The letter, addressed to President Trump, Congress, and the American public, additionally argued against undue political influences, remarking that "protection [of Fed governors] is not merely a legal formality; it is a practical mechanism, designed to ensure that monetary policy cannot be misused for political gain at the expense of what's best for the economy."[33]
On August 28, 2025, Cook sued Trump, the Board of Governors, and Jerome Powell,[34] arguing that Trump lacked authority to dismiss her.[35] She requested that a judge issue a preliminary injunction to retain her position and "A declaration that President Trump's August 25, 2025 purported firing of Governor Cook is unlawful and void and that Governor Cook remains an active member of the Board of Governors of the Federal Reserve".[36][34]Bloomberg News described the lawsuit as the beginning of "a historic fight" over the Federal Reserve's independence.[36] Hours later, JudgeJia M. Cobb scheduled an initial hearing on the injunction for the following day.[37]
At the hearing on August 29, Cook's legal team accused the administration of waging "an obvious smear campaign" and making "vague, unsubstantiated allegations". The plaintiff requested atemporary restraining order. Judge Cobb did not make a ruling on the request at this hearing.[38]
On September 9, federal Judge Jia Cobb issued a preliminary injunction that blocks President Trump from removing Lisa Cook from her position at the Federal Reserve while the case proceeds in court.[39][1][40] Cobb wrote that the "for cause" clause "does not contemplate removing an individual purely for conduct that occurred before they began in office". Cook's lawyer, Abbe Lowell, released a statement, saying in part that the ruling "recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference" and that "Governor Cook will continue to carry out her sworn duties as a Senate-confirmed Board Governor" for the time being.[1][2][3] In the same week, the Trump administration filed an emergency motion for appeal with theUnited States Court of Appeals for the District of Columbia Circuit.[41]
On September 15, the D.C. Circuit ruled that the President could not terminate Cook before theFederal Open Market Committee's September 2025 meeting in a 2 to 1 decision.[4][5] On September 18, the Trump administration petitioned the Supreme Court with an emergency appeal to lift the lower court rulings.[42][43] On September 25, anamicus brief in the case urging the Supreme Court to block Trump's firing of Cook was signed by:
On October 1, the Supreme Court deferred an emergency request from Trump to remove Cook immediately, deciding to reconsider the issue in January.[6][7]
