Cook’s complaint describes Trump’s move against her as “unprecedented and illegal,” arguing that her firing, if allowed to take place, “would be the first of its kind in the Board’s history” and “would jeopardize the independence of the Federal Reserve, and ultimately, the stability of our nation’s financial system.”
Cook’s filing follows through her vow earlier this week to fight to finish her term that expires in 2038. She asked a judge to immediately issue an order blocking Trump’s effort to remove her and barring the Fed from taking any actions to carry out the president’s demand.
Representatives for Cook’s lawyers and the Fed declined to comment.
Rulings in the case in the coming days and weeks could add to investors’ concerns that the president’s efforts will undermine the independence of the central bank — a bedrock assumption of US markets that underpins the nation’s credit ratings.
Cook said that the market’s negative reaction to Trump’s attempt to fire her is evidence that the public has a strong interest in Fed independence.
“Shortly after President Trump announced his purported firing of Governor Cook, the dollar weakened against major currencies,” according to her filing.
Cook sued days after Trump wrote a letter to her, which he posted on social media, saying that he was removing her immediately in light of her “deceitful and potentially criminal conduct in a financial matter.”
Trump’s post followed a claim on social media by Federal Housing Finance Agency Director Bill Pulte that Cook lied on 2021 loan applications for two properties — in Michigan and Georgia — by claiming she would use each property as her primary residence to secure more favorable loan terms. He said the applications were filed two weeks apart.
The suit says Cook wasn’t given an opportunity to respond to the allegations before Pulte referred the matter for a criminal investigation. Cook hasn’t been charged with wrongdoing.
