Lisa Cook Sues Trump After Being Removed from the Federal Reserve Board

In a legal development that could redraw the boundaries of executive power, Lisa Cook, a member of the U.S. Federal Reserve Board, filed a lawsuit today, Thursday, challenging President Donald Trump's decision to remove her from her position, arguing that the move violates the principle of central bank independence.

In her lawsuit, Cook accuses Trump of violating a federal law that prohibits the removal of board members except for "good cause," noting that the allegations against her regarding alleged real estate fraud date back to 2021, before she joined the board, and do not constitute a legal basis for her removal.

The lawsuit states that the U.S. president is using a loose interpretation of "cause," allowing him to dismiss those who disagree with him within the board, without legal proceedings or hearings, which Cook's lawyers consider a violation of her constitutional right to due process.

The case is likely to reach the Supreme Court, especially given precedents that have allowed the president to remove officials from federal agencies, despite indications that the Federal Reserve may be exempt from this type of direct control.

The event has raised widespread concerns about the independence of U.S. monetary policy, and it immediately reflected on the markets, where the dollar fell against major currencies, amid growing expectations that the central bank may move towards cutting interest rates soon.

In a brief comment, a spokesperson for the Federal Reserve stated that the institution would adhere to any court ruling issued regarding the case, while no official response to the lawsuit had been issued at the time of preparing the news.