Ousted Fed governor Lisa Cook sues the Trump administration amid deepening rift

Lisa Cook, the governor of the U.S. Federal Reserve, who was fired by U.S. President Donald Trump earlier this week over allegations of mortgage fraud, has sued the Trump administration—arguing the President has no authority to remove her from office—as the schism between the White House and the U.S.’ central bank deepens.

According to the lawsuit, Cook has accused President Trump of contravening a federal law when Trump took a step no U.S. President has done before: firing a sitting Governor of the U.S. Federal Reserve. Trump sent a letter to Cook, saying that he had “sufficient cause to remove” her from her position. The allegations refer to Cook indicating that she intended to live in and maintain properties in Georgia (a condominium in Atlanta) and Michigan as her private residence, as stated in documents to obtain two different mortgage loans.

She has reportedly denied allegations of mortgage fraud and has argued that her conduct before joining the U.S. Federal Reserve does not amount to “sufficient cause”. Even if she was guilty of committing mortgage fraud, President Trump could not fire her. “The President would not have ‘cause’ to remove a Federal Reserve Governor even if he possessed smoking gun evidence that she jaywalked in college,” Cook’s lawyers wrote in the lawsuit filed.

Cook, in her lawsuit, has also filed a motion for a temporary restraining order that declares President Trump’s efforts to oust her as illegal, and also restrains the U.S. Federal Reserve from taking any steps to remove her from office. The lawsuit also alleges that President Trump violated the provisions of the U.S. Constitution by firing her without a hearing or notice.