Mass. Senator: Trump’s attempt to fire Fed member is an ‘authoritarian power grab’
U.S. Sen. Elizabeth Warren, D-Mass., is arguing that President Donald Trump’s attempt to fire a Federal Reserve governor must be overturned in court.
On Monday night, Trump published a letter on Truth Social stating that he would remove Federal Reserve Governor Lisa Cook, effective immediately.
The Federal Reserve is the central bank of the United States and is traditionally independent from the executive branch.
“Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump wrote in the letter.
Following Trump’s letter, Warren released a statement calling the 47th president’s attempt to fire Cook “illegal.”
“It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court,” Warren wrote.
The Federal Reserve Act states that governors can only be removed from their positions for wrongdoing, also known as “for cause.”
In his letter, Trump cites a “criminal referral” where Federal Housing Finance Agency Director William Pulte accuses Cook of committing mortgage fraud, according to NBC News.
Cook, however, has not been formally charged with a crime and plans to sue the Trump administration to keep her job, according to the Boston Globe .
Following Trump’s letter on Monday, Cook herself said that she intends to stay on the Federal Reserve, according to NBC News .
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Cook’s attorney, Abbe Lowell, said Trump had no authority to fire Cook, the Globe reported.
“His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis,” Lowell said. “We will be filing a lawsuit challenging this illegal action.”
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