Battle over Fed Seat: Lisa Cook Fights Trump's Removal Bid

Federal Reserve Governor Lisa Cook is battling President Donald Trump's attempt to remove her, citing alleged inconsistencies in mortgage information during her confirmation process. Cook argues these discrepancies were already known and legally insufficient for removal. A legal showdown could challenge the Fed's independent norm.

Federal Reserve Governor Lisa Cook is fighting President Donald Trump's effort to remove her from office, claiming in a detailed court filing that alleged mortgage inconsistencies during her 2022 appointment cannot serve as grounds for her dismissal.

Cook's legal action highlights a potential clash over the longstanding independence of the Federal Reserve as Trump claims her mortgage information is fraudulent. She listed several properties with various designations on her vetting forms, an alleged discrepancy already acknowledged during her confirmation.

The upcoming legal battle could set a new precedent for Fed governance, with significant implications for its independence. Meanwhile, Trump's broader influence on monetary policy remains contentious, as he demands more aggressive interest rate cuts.

(With inputs from agencies.)