Jerome Powell, the left of the Federal Reserve, was held at a public meeting of the Federal Reserve Board of Directors in Washington, DC, on Wednesday, June 25, 2025.
Al Drago | Bloomberg | Getty Images
The Fed said on Tuesday whether President Donald Trump has legal authority to fire Commission member Lisa Cook, which would comply with any court ruling.
“Cook, through her personal attorney, stated that she will immediately challenge the action in court and seek judicial rulings to confirm her ability to continue to fulfill her responsibilities as a member of the Federal Reserve System Committee,” the Fed said in a statement from a spokesperson.
The statement is the first response from the Federal Reserve to Trump’s announcement Monday night, saying he will be removed from the federal government because she committed allegations of mortgage fraud.
The spokesman did not explicitly criticize Trump for his attempt to evacuate Cook.
But the statement made it clear: “Through the Fed Act, Congress directed the governor to serve for a long time, and the president could only delete “for reasons.”
“Protections for the governor's long term and removal are important protections to ensure monetary policy decisions are based on data, economic analysis and the long-term interests of the American people,” the statement said.
Trump told reporters separately on Tuesday that he would comply with any court ruling on the fate of the Federal Reserve Cook.
“I comply with the court, yes, I comply with the court,” he said. He also predicted that the Fed's board will soon be composed of the majority of the appointed people after he chose Cook's replacement.
If Trump gets most appointments, he may have better success, causing the Fed to repeatedly demand lower interest rates.
Any federal court challenge Cook had to fire her could end with the Supreme Court’s final word on the dispute.
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“The Fed system was established by Congress to enforce its statutory mandates, including promoting the highest employment, stable prices and a well-functioning financial system,” a Fed spokesman said in a statement Tuesday.
“The Fed will continue to perform its duties under the law,” a spokesperson said.
“As usual, the Fed will comply with any court ruling,” they said.
“The Fed reaffirms its commitment to transparency, accountability and independence in services for families, communities and businesses in the United States.”
Cook's lawyer Abbe Lowell said Tuesday that Trump “has no right to remove” Cook.
“His attempt was based solely on letters of recommendation and lacked any factual or legal basis,” Lowell said. “We will file a lawsuit to challenge this illegal action.”
Cook said Monday night that she will continue working at the Fed despite Trump's claim that he has the right to remove her.
The Fed did not answer CNBC’s questions about whether Cook was working at the Washington, D.C. Central Bank headquarters on Tuesday or remotely.
“The president exercises his legal power to remove the Governor of the Federal Council from 12 USC 242 cause,” White House spokesman Kush Desai said in a statement.
“The president determined that there was reason to dismiss the state was reliably accused of lying on financial documents from a highly sensitive position,” Desai said.
– CNBC Erin Doherty Contributing to this story.