On Thursday, Aug. 28, 2025, Federal Governor Lisa Cook sued the President of the United States, Donald Trump, after he tried to fire her.
According to BBC News, this started a high-stakes legal battle over the president’s authority to remove members of the central bank’s independent board. The Board of Governors consists of seven members, who are in charge of overseeing the Federal Reserve Bank.
The Federal Reserve handles the country’s national monetary system and it promotes financial stability in the United States. They ensure that the United States has a stable economy and financial system.
BBC News states that Trump informed Cook that he had found a “sufficient reason” to fire her. Bill Pulte, who was a Trump-appointed director of the Federal Housing Finance Agency, believed that Cook made false statements on her mortgage, claiming that she falsified information on two mortgage applications.
The lawsuit could have significant implications for the independence of the Federal Reserve. Legal experts say that the case may test the limits of executive power.