Federal Reserve Governor Lisa Cook, who President Donald Trump proclaimed to have fired on Monday amid his war against the central bank for refusing to slash interest rates, has named Trump and Federal Reserve Chair Jerome Powell in a new lawsuit protesting the decision.
First reported by Politico reporter Kyle Cheney, the lawsuit suggests a complicated pattern of events based on Powell being named in the suit alongside Trump.
Critics have warned that the decision to fire Cook could dramatically undermine the United States’ standing on the world stage, lead to chaos at the Federal Reserve, and even weaken the value of the American dollar.
Trump’s attempt to fire Cook was made due to allegations against her of mortgage fraud, claims that have yet to be litigated in court, and that Cook denies. A Biden-appointee, Cook has remained defiant, and pledged to continue to serve out the remainder of her 14-year term.
Trump has long feuded with the Federal Reserve throughout his second term, urging Powell repeatedly to reduce interest rates, demands that, so far, Powell and the Federal Reserve have remained resistant to, particularly among the economic uncertainty brought on by Trump’s tariff policy. Trump had previously suggested he may end up firing Powell, but has since backed off the idea after pushback from Republicans.JUST IN: Lisa Cook's forthcoming lawsuit to contest her firing appears to list Trump *and* Fed Chairman Jerome Powell as defendants. pic.twitter.com/l05eZHixNH
— Kyle Cheney (@kyledcheney) August 28, 2025