Fed Director Cook Calls Trump’s Dismissal "Unlawful... Will File Lawsuit"

Lisa Cook, a member of the U.S. Federal Reserve Board, announced through her attorney on August 26 (local time) that she will file a lawsuit in response to President Donald Trump's decision to remove her from office.

AP Yonhap News

원본보기 아이콘

According to local media, including the U.S. daily The New York Times, Cook's attorney Abbe Lowell stated in a press release that "President Trump does not have the authority to remove Director Cook."

He added, "An attempt to remove her based solely on a single letter has no factual or legal basis. We will file a lawsuit against this unlawful action."

Previously, President Trump publicly posted a letter notifying Cook of her dismissal on his own social networking service, Truth Social. He cited allegations of mortgage fraud as the reason, claiming, "She cannot be trusted due to conduct related to financial matters that may be deceptive and even criminal." Trump argued that Cook purchased a home in Georgia, declared it as a 'residence' to secure favorable loan terms, and then converted it to a rental property, using this as grounds for her removal.

This is the first time in the 112-year history of the Federal Reserve that a board member has been dismissed. Under the Federal Reserve Act, board members are guaranteed a 14-year term and can only be removed by the President for 'cause.' Traditionally, 'cause' has been understood to mean illegal acts or neglect of duty.

Cook is expected to file for a court injunction to halt the effect of the dismissal order.

The financial markets view this incident as President Trump openly pushing for a reorganization of the Federal Reserve in order to enforce the interest rate cuts he has demanded. Concerns are also growing over political interference with the central bank.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.