Federal Reserve Board member Lisa Cook sued President Trump on Thursday over his \u201cunprecedented and illegal attempt\u201d to remove her from her position.<\/p>\n\n\n\n
She asked a judge to block her removal from the board to \u201csafeguard\u201d its congressionally mandated independence, allowing her and the Fed at large to \u201ccontinue its critical work<\/strong>.\u201d <\/p>\n\n\n\n \u201cThe operational independence of the Federal Reserve is vital to its ability to make sound economic decisions, free from the political pressures of an election cycle,\u201d the complaint reads. <\/p>\n\n\n\n It sets up a legal battle that could redefine the president\u2019s power<\/strong> over an institution traditionally seen as independent from the political whims of the White House, a new front in Trump\u2019s quest to expand executive control. <\/p>\n\n\n\n The Federal Reserve Act<\/strong> says the president can only remove members of the governing board \u201cfor cause.\u201d The courts have never weighed exactly what that means because no president has sought to remove a Fed governor, until now. <\/p>\n\n\n\n Trump claimed in his Monday letter firing Cook that he does have cause to remove her, pointing to a criminal referral from the Federal Housing Finance Agency that suggests she may have made false statements<\/strong> on one or more mortgage agreements. <\/p>\n\n\n\n The referral alleges Cook illegally deemed two properties in Michigan and Georgia her \u201cprimary residence,\u201d a declaration that can result in a lower interest rate.<\/p>\n\n\n\n