Earlier this month, Lisa Cook, a member of the Federal Reserve Board of Governors, became the first Black woman to this tony post. Today, she’s preparing for her upcoming legal showdown after Donald Trump moved to impeach and remove her from office. Cook’s attorney, Abbe Lowell, says he will sue Trump to challenge her dismissal based on his authority to fire her. This decision pretty clearly opens the door to a huge showdown that might one day reach the Supreme Court.
The firestorm began when Trump first alluded to firing Cook. This was in response to mortgage fraud charges brought by another official whom Trump had appointed. In response to the unfolding situation, Kevin Hassett, Trump’s top economic advisor, suggested that if he were in Cook’s position, taking leave would be the best course of action.
“If I were her in her situation, I’d go on leave,” Hassett told reporters outside the White House. He continued, “I believe it’s the right thing to do … I think it’s the honorable thing to do.” Hassett went on to defend Trump’s extraordinary attacks on Fed independence, claiming that the president actually has the power to remove a Federal Reserve governor “for cause.”
This advancement is a major victory for Cook’s short time in this nonpartisan position, which began in earnest when she was nominated by Trump, Jr. She was accused of Title IX violations, leading to major controversy inside her administration — and questions about due process. When pressed on the implications of Cook’s presumption of innocence given the serious allegations, Hassett dodged the question entirely. Rather than prioritize these key issues, he further doubled down on his opposition to her taking leave.
Cook has very strongly contested Trump’s right to remove her, saying “he has no authority to do so.” As tensions continue to escalate, it’s anyone’s guess what happens next. This upcoming lawsuit would be the first to question the legality of Trump’s actions. This case has important implications for the independence of Federal Reserve governors in future administrations.