The Federal Reserve issued its first response Wednesday to President Trump’s attempt to remove Gov. Lisa Cook, stopping short of backing her planned court challenge or directly criticizing the president’s action.
A spokesperson for the Fed said that Cook “has indicated through her personal attorney that she will promptly challenge this action in court” and that the central bank “will abide by any court decision.” The Fed made no mention of recognizing Trump’s removal or any interim governance arrangements.
Trump announced Cook’s removal Monday evening, citing allegations of mortgage fraud. Cook immediately rejected the action, saying through her attorney that Trump “has no authority to remove” her and that she would file a lawsuit.
The Fed’s statement appeared to align with Cook’s position, noting that under the Federal Reserve Act, governors “may be removed by the president only ‘for cause’” and serve “long, fixed terms.” The central bank said these protections ensure monetary policy decisions remain “based on data, economic analysis, and the long-term interests of the American people.”
Trump has said that he has met the threshold for removing Cook “for cause.”
Notably, the Fed made no reference to conducting any internal investigation into the allegations against Cook, despite Treasury Secretary Scott Bessent’s recent calls for such a review. Bessent had urged Fed Chair Jerome Powell to examine the matter internally “before there is an external review.”
The Fed said it would “continue to carry out its duties as established by law” while the legal dispute unfolds. The central bank did not respond to questions about whether Cook was working at Fed headquarters Tuesday or what role she would play in upcoming policy decisions.
Trump told reporters Tuesday that he would also “abide by the court” decision, while predicting he would soon have a majority of appointees on the Fed’s seven-member board after selecting Cook’s successor.
The White House defended the removal, with spokesman Kush Desai saying Trump “exercised his lawful authority to remove a governor” based on being “credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions.”
Cook’s attorney, Abbe Lowell, called Trump’s action illegal and said it “lacks any factual or legal basis.”
The dispute sets up what could be a landmark Supreme Court case on presidential authority over independent agencies. No president has previously attempted to remove a Fed governor, making this uncharted legal territory.
The Fed concluded its statement by reaffirming its “commitment to transparency, accountability, and independence,” language that neither endorsed nor rejected Trump’s action but emphasized the institution’s statutory role.
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