SaralnamaOn 28 Aug 2025, US Federal Reserve Governor Lisa Cook filed a lawsuit against President Donald Trump after he tried to remove her from her position. Cook wants the court to declare Trump's firing order unlawful. Trump claimed Cook made false statements on her mortgage and said he had the constitutional right to remove her for cause. Cook is part of the board that sets US interest rates, a role Trump has pressured due to his wish for lower rates. The lawsuit also names Fed Chairman Jerome Powell and may lead to a Supreme Court case. Cook denies any wrongdoing, and no charges have been filed against her. The Federal Reserve Act requires a valid reason to remove a governor, which Cook's lawyer says Trump has not shown. Trump’s team argues that removing Cook improves the Fed's accountability. Cook voted with most board members to keep interest rates steady in July. This case highlights tensions over the independence of the US central bank and could affect financial policies worldwide. (Updated 28 Aug 2025, 20:39 IST; source: link)