Trump tries to fire Fed governor Cook, who sues saying he can't

President Trump tried to fire Federal Reserve Governor Lisa Cook on Aug. 25, 2025, claiming mortgage fraud. This marked the first presidential firing attempt of a Fed governor in 111-year history.

Cook refused to resign, stating 'President Trump purported to fire me for cause when no cause exists under the law, and he has no authority to do so.'

Lisa Cook is the first Black woman to serve as a Fed governor. Biden nominated her in 2022 with a term extending to 2036.

The Justice Department opened a criminal investigation into Cook's mortgage applications after Pulte's referral, though prosecutors haven't filed any charges.

The Federal Reserve Act of 1913 allows the president to fire Fed governors only 'for cause'—historically meaning malfeasage or dereliction of duty.

Cook is the first Black woman to serve as a Fed governor. Biden nominated her in 2022 with a term extending to 2030.

Cook's legal challenge in federal court could reach the Supreme Court over presidential authority to remove Fed governors.