Federal Reserve Governor Lisa Cook, the first Black woman to serve on the Fed’s Board of Governors, is standing firm after President Donald Trump attempted to fire her this week in a move her attorney calls “illegal and unprecedented.”
On Tuesday, Aug. 26, Cook’s attorney, Abbe Lowell, announced plans to file a lawsuit challenging Trump’s authority to remove her.
“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,” Lowell said in a statement to CNN.
The announcement followed Trump’s social media post on Monday night, in which he shared a letter addressed to Cook claiming there was “sufficient cause” for her removal, citing alleged “gross negligence in financial transactions.”
Cook has not been charged with any wrongdoing and has rejected all allegations.
A Historic and Unprecedented Clash
In the 111-year history of the Federal Reserve, no sitting governor has ever been fired by a president.
The Federal Reserve Act allows removal “for cause,” but legal scholars note that the statute does not clearly define what constitutes such cause — leaving this moment unprecedented in U.S. history.
Cook responded Monday evening, declaring she will not step down:
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Her refusal to bow to political pressure underscores her long-standing commitment to public service.
Last week, she also said she would not be “bullied to step down” and remains dedicated to “gathering the accurate information to answer any legitimate questions and provide the facts.”
Targeted Scrutiny
Cook, a renowned economist and academic, has come under repeated political attack by Trump and members of his administration. Most recently, critics have circulated unsubstantiated allegations of mortgage fraud — a claim that has yet to yield any formal charges.
Her attorney, Abbe Lowell, is also representing New York Attorney General Letitia James — another prominent Black woman facing similar scrutiny in an unrelated FBI probe. The parallel attacks have drawn criticism from advocates who argue that Black women in positions of power are being disproportionately targeted and undermined.
Legal Fight Ahead
Trump’s letter asserted that Cook’s alleged actions “call into question [her] competence and trustworthiness as a financial regulator.”
However, legal experts argue that the Constitution guarantees the independence of the Federal Reserve from direct political control, and any attempt to fire a Fed Governor will likely face rigorous judicial review.
Lowell, who has represented high-profile figures across both political parties, from Ivanka Trump to Hunter Biden, pointed out that the case is about more than just Cook’s position. It’s about the rule of law and protecting institutional independence.
Why This Matters
Cook’s fight carries profound significance for both economic governance and representation at the highest levels of finance. As the first Black woman on the Fed’s Board of Governors, her leadership symbolizes progress in an institution historically lacking diversity.
By refusing to resign, Cook is sending a message to young Black and Brown women across the country: resilience and integrity are powerful tools against unjust attempts to diminish their voices.
The case will now move into the courts, where the legality of Trump’s attempted removal will be tested.
