Federal Reserve Governor Lisa Cook filed a lawsuit on Thursday. She challenged President Donald Trump’s move to fire her. The case comes as Trump intensifies pressure on the central bank.

On Monday, Trump posted a letter on Truth Social. He announced that he was removing Cook and accused her of making false statements in mortgage documents.

“This case challenges President Trump’s unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would (be) the first of its kind in the Board’s history,” court filings said.

Therefore, Cook asked the court to confirm her status as Fed governor so she can continue in her role.

Cook Seeks Immediate Court Protection

In her petition, Cook requested “immediate declaratory and injunctive relief.” She argued that Congress guaranteed the Fed’s independence.

Moreover, she sought a temporary restraining order. This order would block Trump’s attempt and stop the Fed from removing her for now. The court scheduled a hearing on the motion for Friday morning.

White House Defends Trump’s Decision

Meanwhile, the White House defended Trump’s action. Spokesman Kush Desai said Trump “determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions.”

In addition, Press Secretary Karoline Leavitt said, “Mortgage receipts were very clearly shown to the president.”

Officials alleged that Cook falsely claimed two primary residences, one in Michigan and another in Georgia. However, Cook has not been charged with any crime, and the alleged incidents occurred before she joined the Fed.

Analysts Warn of Threat to Fed Independence

As a result, analysts said Trump’s move marked a sharp escalation in his efforts to influence the Fed. They warned it could threaten the bank’s independence.

Cook’s lawsuit also highlighted this point. It stated that Fed independence “is vital to its ability to make sound economic decisions, free from the political pressures of an election cycle.”

Trump’s Push on Interest Rates

For months, Trump has urged the Fed to cut interest rates. He repeatedly attacked Fed Chair Jerome Powell, calling him “too late” and even a “moron.”

Nevertheless, policymakers kept rates steady. They monitored the effect of Trump’s sweeping tariffs on consumer inflation. By removing Cook, Trump could install another member on the Fed’s board who may support lower rates.

Still, a Fed spokesperson confirmed the central bank “will abide by any court decision.”

A Wider Test of Presidential Powers

Finally, the dispute reflects a larger struggle over presidential authority. Trump, now in his second term, has moved aggressively to expand executive power, supported by loyalists in government.

Recently, the Supreme Court allowed him to dismiss members of other independent boards. However, the ruling made an exception for the Fed.

Under federal law, Fed governors can only be removed “for cause.” This standard usually refers to misconduct or neglect of duty, not political disagreements.