Federal Reserve Governor Lisa Cook vowed to sue over US President Donald Trump's attempt to remove her from the post. Cook's lawyer revealed the plan Tuesday in a statement distributed to US media.



Trump posted a letter to Cook on his social media on Monday. It says she may have made false statements on one or more mortgage agreements, and that the president is firing her with immediate effect.



Cook's lawyer said that Trump's "demands lack any proper process, basis or legal authority."



Members of the Fed's board of governors serve 14-year tenures and may be removed by the president only for cause. Cook's term doesn't expire until 2038.



Trump told reporters on Tuesday that he has cause to remove her.



Trump said in a cabinet meeting, "She seems to have had an infraction, and she can't have an infraction, especially that infraction because she's in charge of, if you think about it, mortgages. We'll have a majority very shortly. So that'll be great. Once we have a majority housing is going to swing, and it's going to be great."



Trump has repeatedly urged the Fed to lower interest rates. Concerns are spreading that the Fed's independence will be undermined if Cook is ousted and replaced with a Trump loyalist.
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Quiz 1:
What action did Federal Reserve Governor Lisa Cook announce on August 27, 2025?
A. Resignation
B. Lawsuit against US President Donald Trump
C. Request for lower interest rates from the Fed
D. Removal of a member from the board of governors

Quiz 2:
According to the article, what authority does US President Donald Trump claim to have in removing Federal Reserve Governor Lisa Cook?
A. Legal authority based on a proper process
B. Authority due to a majority in housing
C. Removal for cause as specified in her tenure
D. No explicit stated authority

Quiz 3:
How long does the term of Federal Reserve's board of governors typically last?
A. 14 years
B. 7 years
C. 5 years
D. 10 years