August 26, 2025court rulingconstitutional lawFed independenceexecutive removal powerconstitutional lawmonetary policyexecutive power
Fed Governor Cook sues after defying Trump removal
Federal Reserve Governor Lisa Cook filed a federal lawsuit challenging her termination, reporting to work at the Fed as if still in office and participating in a scheduled board meeting. Cook's legal team argued the Federal Reserve Act's "for cause" removal protection was constitutional under Humphrey's Executor v. United States and its successor cases. The standoff created an unprecedented dual-authority dispute over who constituted the legal Fed board.