Fed Governor Lisa Cook Challenges Trump’s Removal Attempt as Legal Battle Heads to Congress and SCOTUS

The Federal Reserve has broken its silence on the escalating legal confrontation between Governor Lisa Cook and former President Donald Trump. The central bank explicitly stated it WOULD adhere to any court decision while firmly supporting Cook's challenge against her attempted removal. This case may set a precedent on whether a sitting president can dismiss a Senate-confirmed Fed governor.

Cook, through her legal team, is swiftly contesting Trump's action in court, seeking judicial affirmation of her right to remain in office. The Fed emphasized that the Federal Reserve Act grants Congress exclusive authority over the removal process, with governors protected by fixed terms and removable only "for cause." While the central bank didn't directly address Trump's justification, it underscored the importance of these safeguards in preserving monetary policy independence from political interference.

"Long tenures and removal protections for governors serve as a vital safeguard," the Fed declared, reinforcing its commitment to data-driven policymaking in the interest of the American public. The institution reiterated its statutory mandate to operate independently, signaling a firm stance against executive overreach.