'Dismissal' Lisa Cook governor sues Trump…"Historic fight begins"

JOON HYOUNG LEE

Summary

Lisa Cook, a Federal Reserve (Fed) governor, filed a lawsuit against President Trump after being dismissed.
Bloomberg said the lawsuit deepens the conflict between the White House and the Fed, and that a historic fight over the independence of the U.S. central bank has begun.
Bloomberg reported that investors' concerns about the potential undermining of the Fed's independence could grow.

Lisa Cook, a Federal Reserve (Fed) governor whom U.S. President Donald Trump dismissed, has filed a lawsuit over her dismissal.

According to Bloomberg on the 28th, Cook filed a lawsuit that day in the U.S. District Court in Washington, D.C., challenging President Trump's dismissal. The full complaint has not yet been made public. Bloomberg said, "This lawsuit will worsen the conflict between the White House and the Fed," and "a historic fight over the independence of the U.S. central bank has begun."

Earlier, President Trump announced Cook's dismissal on the 26th. The Trump administration alleges that mortgage-related financial records were manipulated. The Federal Housing Finance Agency (FHFA) referred the matter to the Department of Justice, and a criminal investigation is reportedly underway.

President Trump has been stepping up pressure on the Fed to cut interest rates. Bloomberg said, "The Fed has resisted calls for interest-rate cuts despite President Trump repeatedly attacking Chair Jerome Powell," and "if a ruling comes in this case within the next few weeks, investors' concerns that the central bank's independence could be undermined may grow."

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