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Embattled Federal Reserve governor Lisa Cook sues Trump to prevent firing

The embattled Fed official’s lawyers asked for a judge to block the president’s “unprecedented and illegal” attempt to oust her, which would allow her to keep her job while the case proceeds in Washington, DC, district court.

Cook, whose term is set to expire in 2038, recently retained ex-Hunter Biden attorney Abbe Lowell to defend her in the legal challenge.

In the filing, Lowell and the rest of Cook’s legal team claimed her sacking “would subvert the Federal Reserve Act (‘FRA’), which explicitly requires a showing of ’cause’ for a Governor’s removal, which an unsubstantiated allegation about private mortgage applications submitted by Governor Cook prior to her Senate confirmation is not.”

By most interpretations of federal law, Cook — who earns $225,700 per year in her position and has yet to be charged with any crime — must be shown to have engaged in “inefficiency, neglect of duty, or malfeasance in office” to be fired for cause.

The lawyers also argued the firing would violate Cook’s Fifth Amendment due process rights, since she wasn’t given a heads-up before Trump publicly pink-slipped her on Truth Social Monday evening.

“It is clear from the circumstances surrounding Governor Cook’s purported removal from the Federal Reserve Board that the mortgage allegations against her are pretextual, in order to effectuate her prompt removal and vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve,” the lawsuit concluded.

White House spokesman Kush Desai told The Post that the president “exercised his lawful authority to remove a governor on the Federal Board of Governors for cause.”

“The President determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions,” Desai said in a statement.

“The removal of a governor for cause improves the Federal Reserve Board’s accountability and credibility for both the markets and American people.”

Trump previously argued the Federal Reserve Act allows board governors to be removed “for cause” and claimed there was “sufficient cause,” given the mortgage fraud allegations for Cook to be removed.

“[A]t a minimum,” he added in a letter to Cook, the allegation “calls into question your competence and trustworthiness as a financial regulator.”

Federal Housing Finance Agency Director Bill Pulte first accused Cook, an academic who served on former President Barack Obama’s White House Council of Economic Advisers and former President Joe Biden’s transition team, of falsifying bank documents and property records to secure better loan terms.

In an Aug. 20 X post, Pulte alleged that the Biden-era Fed appointee listed a condo in Atlanta as her primary residence in July 2021.

Federal Housing Finance Agency Director Bill Pulte first accused Cook, an academic who served on former President Barack Obama’s White House Council of Economic Advisers and former President Joe Biden’s transition team, of falsifying bank documents and property records to secure better loan terms.

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That was signed just two weeks after she obtained a loan on her Michigan home, which she also declared as a primary residence.

The alleged fraud was noted in a criminal referral sent to Attorney General Pam Bondi.

Former Vice President Kamala Harris cast the tie-breaking vote to confirm Cook after the Senate deadlocked 50-50 on her appointment in May 2022.

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