Federal Reserve Governor Lisa Cook has filed a federal lawsuit seeking to block President Donald Trump’s attempt to oust her from the central bank’s Board of Governors. The 24-page complaint, lodged on 28 Aug 2025 in Washington, D.C., names Mr. Trump, Fed Chair Jerome Powell and the Board itself as defendants and asks the court to declare that Cook remains in office pending the outcome of the case. Mr. Trump informed Cook on 25 Aug that he was removing her “effective immediately,” citing a referral from Federal Housing Finance Agency Director Bill Pulte that accused the governor of misrepresenting two properties as primary residences on 2021 mortgage applications. Cook, who was confirmed in 2022 to a 14-year term ending in 2038, denies wrongdoing. Her lawyer, Abbe David Lowell, argues the allegations are unproven, precede her tenure and do not constitute the statutory “cause” required under the Federal Reserve Act. The lawsuit frames the dismissal as an unprecedented breach of the Fed’s congressionally mandated independence and contends the president lacks unilateral authority to remove governors. A Fed spokesperson said the central bank will comply with any court ruling and noted that removal protections are designed to shield monetary policy from political pressure. Legal scholars expect the dispute—potentially headed for the Supreme Court—to clarify the limits of presidential power over the 111-year-old institution. Investors are watching closely after initial market jitters underscored the broader stakes for U.S. monetary credibility.