Cook, a Fed member fired by Trump, files a lawsuit against the decision – so what’s going on now?

Federal Reserve member Lisa Cook filed a lawsuit today disputing President Donald Trump’s decision to take her into office. Cook argued that the White House had no authority to do so and that he wanted to maintain his position.

Cook’s lawsuit filed in U.S. District Court in Washington called the dismissal “unprecedented illegal.” Cook described Trump’s move as an attempt to put political pressure on the independent Federal Reserve to cut interest rates.

This case is seen as the initiation of a critical legal process for the future of the Fed, an independent institution. Trump has long criticised the Fed and has taken steps to appoint people who share his monetary policy views.

Cook also appointed the Federal Reserve and Chairman Jerome Powell as parties to the lawsuit, citing his authority to implement Trump’s directions. In a statement on the litigation, the Fed said it would “comply with the court’s decision.”

Trump announced Cook’s firing in a letter shared on social media three days ago. The president argued that Cook was involved in mortgage fraud and was using the “removal power” enshrined in the Fed’s charter. However, Cook was not charged with a crime or convicted of a crime.

Experts have raised serious questions about the legal basis for Trump’s decision. Lack of evidence and allegations before Cook’s tenure with the Fed further fueled controversy. Moreover, the fact that Cook was fired without the opportunity to protect himself is considered legally problematic.

Cook’s lawyers submitted a 24-page summary, alleging that each of the bullets “dampens” the safety measures permitted under the Federal Reserve Act and that Trump violated Cook’s legal rights. The filing argued that the mortgage claim in question does not constitute “inefficient, neglect of obligation, or abuse of employment” of the law.

At the heart of Trump’s claims, Cook listed two different addresses as his main residence, but the lawsuit also does not provide a clear explanation of this.

*This is not investment advice.