Embattled Fed Governor Sues Trump Administration

The Federal Reserve governor fighting to keep her job has followed through on plans to sue the Trump administration. Lisa Cook on Thursday asked the US District Court in DC to block her firing by President Trump, reports the Washington Post. Among other things, Cook argued that the allegations of mortgage fraud leveled against her don't meet the legal standard to warrant her removal.

The pertinent law "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," the lawsuit says, per the AP. The complaint sets up an unprecedented legal fight, one that could determine the central bank's independence from White House control. "An independent Federal Reserve is essential for a stable economy, as the short-term political interests of a president often clash with sound monetary policy," says Cook's complaint.

The White House appears to be digging in. Shortly after news emerged on Cook's lawsuit, the administration official leading the charge against her weighed in. "Well, in addition to alleged mortgage and other fraud, there is new info we are learning about her deceitfulness while in office," tweeted Bill Pulte, head of the Federal Housing Finance Agency.