Court filed by the Commander of the Federal Bank of USALisa Cook, challenging President Donald Trump’s attempt to dismiss her for allegations that she lied to housing loan applicationsstarting a historic dispute over the independence of the US Central Bank.
Specifically, Lisa Cook filed the lawsuit on Thursday (28.8.25) to a federal court in Washington, according to court records. Full treatment was not readily available, according to Bloomberg. The lawsuit is a significant escalation of the growing conflict between the White House and the US Central Bank Fed, which has resisted its demands Donald Trump To reduce interest rates, even when Trump has repeatedly attacked Jerome Powell. The Fed president has also resisted the president’s demands to resign.
Decisions in the case in the coming days and weeks could boost investor concerns that the president’s efforts will undermine the central bank’s independence – a key case of US markets that support the country’s credit ratings.
Cook was sued a few days after Trump wrote a letter to her, published on social media, saying she immediately removed her from her post in the light of her “fraudulent and possibly criminal behavior on an economic issue”. Cook has not been officially investigated or accused of any offense.
White house representatives did not respond immediately to commentary requests. A spokesman for Cook’s lawyer refused to comment.
The conflict broke out after the Director of the Federal Housing Funding Service Bill Pult claimed on social media that Cook lied to the 2021 loan applications for two properties – in Michigan and Georgia – claiming to use each other. He said the applications were submitted by two weeks difference.