Fed's Lisa Cook Sues Trump, Powell & Board of Governors To Keep Job Amid Mortgage Fraud Fiasco

Federal Reserve Governor Lisa Cook has sued the Trump administration, Fed Chair Jerome Powell, and the Board of Governors itself – after President Donald Trump fired her on Monday over claims that she lied on mortgage applications – allowing her to double-dip on tax and lending advantages. 

The lawsuit seeks “A declaration that President Trump’s August 25, 2025 purported firing … is unlawful and void and that Governor Cook remains an active member of the Board of Governors of the Federal Reserve,” and a declaration from the court that “an unsubstantiated allegation of mortgage fraud prior to a Governor’s confirmation is not cause for removal.”

Cook’s lawsuit claims that Trump violated the Federal Reserve Act, the Fifth Amendment’s Due Process Clause, and other statutory rights – and that Trump’s action lacks “cause” as required by the FRA. 

Represented by former Hunter Biden attorney Abbe Lowell – who also represents NY Attorney General Letitia James, former Homeland Security official Miles Taylor, and a whistleblower – James filed the lawsuit in federal court in Washington DC – in what amounts to the latest in a major escalation in the growing clash between the White House and the Fed – which notably dropped interest rates while inflation soared into the home stretch of the 2024 US election (ostensibly to juice the market and help Biden), yet has resisted Trump’s demands to lower interest rates as inflation has come down. 

And while former members of the Fed have stepped down over alleged improprieties, Cook is digging in.

2021: Dallas Fed president Kaplan busted for suspicious stock trades, resigns
2021: Boston Fed president Rosengren busted for suspicious stock trades, resigns
2022: Fed vice chair Richard Clarida busted for suspicious trades, resigns
2025: Lisa Cook vows to stay on

— zerohedge (@zerohedge) August 26, 2025

We’re sure Cook’s legal team is counting on a DC jury being sympathetic to Cook’s claims in response to her firing, in which Trump accused her of “deceitful and potentially criminal  conduct in a financial matter.”

The Trump-Cook clash erupted after Federal Housing Finance Agency Director Bill Pulte dropped receipts showing that Cook lied on 2021 loan applications for two properties in Michigan and Georgia – claiming that each was her primary residence. 

Read the complaint below:

Cook Trump Comp 082825 by Zerohedge Janitor

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