The Federal Reserve said Tuesday it will follow any court decision on whether President Donald Trump has the authority to dismiss Board of Governors member Lisa Cook, who vowed to fight her removal in court.
In its first public response since Trump announced Monday night that he was firing Cook over alleged mortgage fraud, the Fed stressed that she plans to challenge the move. “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,” a spokesperson said.
The central bank avoided direct criticism of Trump but emphasized that Congress set long, fixed terms for governors and allowed removal by the president only “for cause.” The Fed noted such protections are crucial to keep monetary policy decisions focused on data and the long-term interests of Americans.
Trump told reporters Tuesday he will respect any judicial ruling on Cook’s future. “I abide by the court, yeah, I abide by the court,” he said, while adding he expects a majority of his nominees on the Fed board soon, which could help advance his calls for significant interest rate cuts.
Cook’s attorney, Abbe Lowell, said Trump “has no authority to remove” her and called the president’s attempt “illegal.” Lowell said a lawsuit will be filed to block the action, arguing the move relies on a “referral letter” without factual or legal merit. Cook said Monday she will continue working at the Fed despite Trump’s claim of removal. The Fed did not confirm whether she was working from its Washington, D.C. headquarters or remotely on Tuesday.
White House spokesman Kush Desai defended Trump’s move, saying the president acted lawfully under 12 U.S.C. 242. “The President determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions,” Desai said.
Any legal fight is likely to reach the Supreme Court, which could ultimately determine the limits of presidential power over Fed governors. The Fed, in its statement, reaffirmed its commitment to independence, transparency and accountability, noting it was established by Congress to promote maximum employment, stable prices and a sound financial system. “As always, the Federal Reserve will abide by any court decision,” the spokesperson said.
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