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‘Trump has no authority’: Lisa Cook’s lawyer vows to sue administration over attempted firing of Fed governor – live | Trump administration

by Theinsightpost
August 26, 2025
in Australia
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‘Trump has no authority’: Lisa Cook’s lawyer vows to sue administration over attempted firing of Fed governor – live | Trump administration

Top congressional Democrats fire back against Trump’s plans to remove Federal Reserve governor

A slew of leading Democratic lawmakers have fired back at Donald Trump’s plans to fire Federal Reserve governor Lisa Cook.

Chuck Schumer, the senate minority leader, accused the president of playing “a dangerous game of Jenga with a key pillar of our economy.” Schumer said that by attempting to remove Cook and install a loyalist, Trump would “shred” the Fed of its independence, and put “every American’s savings and mortgage at risk.”

The ranking member on senate banking committee, Elizabeth Warren, called Trump’s letter announcing Cook’s firing an “authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.”

As my colleague, Callum Jones, notes, the supreme court suggested earlier this year that the president did not have power to fire, without cause, governors of the US central bank. The Federal Reserve acts as an independent agency, whose members do not serve at the pleasure of the president.

Meanwhile house minority leader, Hakeem Jeffries, said that Trump was trying to remove Lisa Cook from her position without “a shred of credible evidence that she has done anything wrong”. Jeffries noted Cook’s achievement as the first Black woman to serve on the Federal Reserve board, and added that “to the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House.”

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Updated at 10.43 EDT

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    The lawyer for Lisa Cook, the Federal Reserve governor who Donal Trump has moved to fire, said she will file a lawsuit challenging the president’s attempt to remove her from her position. Abbe Lowell, Cook’s counsel, said in a statement to reporters that Trump’s “attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this action.”

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    Earlier, Cook was steadfast in dismissing Trump’s letter that called for her removal “effective immediately”. The Federal Reserve governor is serving a 14-year terms, and said that she will not resign. “I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she added.

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    Since the president posted Cook’s firing letter, a slew of leading Democratic lawmakers have fired back at Trump’s plans to remove the Federal Reserve governor. Chuck Schumer, the senate minority leader, accused the president of playing “a dangerous game of Jenga with a key pillar of our economy.”

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    The Trump administration’s ongoing showdown with the judiciary continued today, when A federal judge in Virginia has dismissed an unprecedented lawsuit, filed by the justice department, against the entire federal district bench in Maryland. The justice department sued all 15 judges over two standing orders that slowed down the administration’s deportation efforts. Since the government had sued all the Maryland justices, Judge Thomas Cullen – a Trump appointee who normally sits in Virginia – presided over the case. In his ruling, Cullen said that the executive branch should appeal the district court’s order, saying it was an inappropriate course of action.

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    Back in DC, attorney general Pam Bondi said that there have been 1,094 arrests in nation’s capital since the federal law enforcement surge that began earlier this month. Bondi also noted that “not a single carjacking has occurred over the past week.”

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    The lawyer for Lisa Cook, the Federal Reserve governor who Donal Trump has moved to fire, said she will file a lawsuit challenging the president’s attempt to remove her from her position.

    “,”elementId”:”655b119d-4aa4-47f6-a547-77fa7503426d”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “President Trump has no authority to remove Federal Reserve governor Lisa Cook,” lawyer Abbe Lowell said in a statement emailed to reporters. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this action.”

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    A federal judge in Virginia has dismissed an unprecedented lawsuit, filed by the justice department, against the entire federal district bench in Maryland.

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    It comes after the Maryland chief judge, George L Russell III, issued two standing orders in May which slowed down the Trump administration’s efforts to quickly deport immigrants. The DoJ argued that this ultimately impeded the president from enforcing immigration laws.

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    Since the government had sued all the Maryland justices, Judge Thomas Cullen – a Trump appointee who normally sits in Virginia – presided over the case. In his ruling, Cullen said that the executive branch should appeal the district court’s order, instead of suing all 15 judges.

    “,”elementId”:”87b2ed0e-3a31-40ac-8721-693259adb06f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “Whatever the merits of its grievance with the judges of the United States District Court for the District of Maryland, the Executive must find a proper way to raise those concerns,” Cullen wrote.

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    A slew of leading Democratic lawmakers have fired back at Donald Trump’s plans to fire Federal Reserve governor Lisa Cook.

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    Chuck Schumer, the senate minority leader, accused the president of playing “a dangerous game of Jenga with a key pillar of our economy.” Schumer said that by attempting to remove Cook and install a loyalist, Trump would “shred” the Fed of its independence, and put “every American’s savings and mortgage at risk.”

    “,”elementId”:”7a2cf1d4-2d35-461d-b443-a08517eb0414″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    The ranking member on senate banking committee, Elizabeth Warren, called Trump’s letter announcing Cook’s firing an “authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.”

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    As my colleague, Callum Jones, notes, the supreme court suggested earlier this year that the president did not have power to fire, without cause, governors of the US central bank. The Federal Reserve acts as an independent agency, whose members do not serve at the pleasure of the president.

    “,”elementId”:”fa86f2a2-f6ab-40ea-b1ae-9320d31f2a5e”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Meanwhile house minority leader, Hakeem Jeffries, said that Trump was trying to remove Lisa Cook from her position without “a shred of credible evidence that she has done anything wrong”. Jeffries noted Cook’s achievement as the first Black woman to serve on the Federal Reserve board, and added that “to the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House.”

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    The response to Hurricane Katrina, which stuck the Gulf Coast 20 years ago this week, was a catastrophe for US disaster management, with the Federal Emergency Management Agency (Fema) failing to reach victims quickly enough, or provide them with sufficient aid.

    “,”elementId”:”fb60a201-c643-4b6f-bfde-cf0991850944″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    This month, I travelled to New Orleans, which was badly affected by the storm and the response. There, victims and other disaster experts told me they are afraid the US has – under Trump – walked back 20 years of progress in the disaster management field.

    “,”elementId”:”bf8ec865-ddf6-46a1-b9d6-faa0ab41bc6d”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “We want more support, more help, not for them to take all that help away,” Betina James, whose home was destroyed by Katrina, told me.

    “,”elementId”:”327ba345-080b-48b4-894b-e8ab1541c3b5″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Read more below:

    “,”elementId”:”9c825f68-5dc5-4b00-894f-947ad1851cd0″},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”prefix”:”Related: “,”text”:”‘You had to fend for yourself’: Hurricane Katrina haunts New Orleans as Trump guts disaster aid”,”elementId”:”c373ca88-0775-4791-babe-f50eeac7436c”,”role”:”thumbnail”,”url”:”https://www.theguardian.com/us-news/ng-interactive/2025/aug/26/hurricane-katrina-anniversary-trump-fema”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1756217229000,”blockCreatedOnDisplay”:”10.07 EDT”,”blockLastUpdated”:1756218022000,”blockLastUpdatedDisplay”:”10.20 EDT”,”blockFirstPublished”:1756217358000,”blockFirstPublishedDisplay”:”10.09 EDT”,”blockFirstPublishedDisplayNoTimezone”:”10.09″,”title”:”Twenty years on – Hurricane Katrina haunts New Orleans as Trump guts disaster aid”,”contributors”:[{“name”:”Dharna Noor”}],”primaryDateLine”:”Tue 26 Aug 2025 12.40 EDT”,”secondaryDateLine”:”First published on Tue 26 Aug 2025 05.31 EDT”},{“id”:”68adacd08f08e1010bf1ea73″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    A few weeks ago, I broke the story about Mohammed Zaher Ibrahim, a 16-year-old dual American-Palestinian citizen who has been held in an Israeli prison since February over allegations of rock throwing.

    “,”elementId”:”0bffb8ea-d86f-43b7-b695-1d5ba961a4c4″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Today, over 100 US human rights, faith-based and civil rights organizations launched a major pressure campaign by signing a letter demanding secretary of state Marco Rubio immediately secure his release.

    “,”elementId”:”797942e4-629f-40b9-9dfd-cdd7786b6162″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    The coalition – which includes the American-Arab Anti-Discrimination Committee, the Center for Constitutional Rights, and Pax Christi USA – is warning that Ibrahim’s deteriorating health puts “his life on the line.”

    “,”elementId”:”aeba28d8-0e4e-4996-9d48-4a4fb2ea8fe3″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    The teenager, who splits his time between the West Bank and Palm Bay, Florida, was 15 when he was arrested from his family’s home in the West Bank. Since then, he’s developed scabies, lost at least 25 pounds, and spent his 16th birthday behind bars.

    “,”elementId”:”538cf473-ddd2-4147-be7e-348de847afd3″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Read more below:

    “,”elementId”:”cb2523c0-73a7-40e7-a7b2-7d8ffe9e5c61″},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”prefix”:”Related: “,”text”:”US groups demand release of American-Palestinian teen imprisoned by Israel”,”elementId”:”a33124b4-79d4-42cb-bbe5-3dcbd9b1383f”,”role”:”thumbnail”,”url”:”https://www.theguardian.com/us-news/2025/aug/26/american-palestinian-teenager-israeli-prison”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1756212432000,”blockCreatedOnDisplay”:”08.47 EDT”,”blockLastUpdated”:1756214350000,”blockLastUpdatedDisplay”:”09.19 EDT”,”blockFirstPublished”:1756214350000,”blockFirstPublishedDisplay”:”09.19 EDT”,”blockFirstPublishedDisplayNoTimezone”:”09.19″,”title”:”More than 100 organizations demand release of American-Palestinian teen held in Israeli prison”,”contributors”:[{“name”:”Joseph Gedeon”}],”primaryDateLine”:”Tue 26 Aug 2025 12.40 EDT”,”secondaryDateLine”:”First published on Tue 26 Aug 2025 05.31 EDT”},{“id”:”68ada8a08f08e1010bf1ea48″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Attorney general Pam Bondi said that there have been 1,094 arrests in DC since the federal law enforcement surge that began earlier this month. Bondi noted that “not a single carjacking has occurred over the past week” in the nation’s capital.

    “,”elementId”:”90574812-87f9-4710-b69d-677043d34890″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    She also said that authorities arrested a man who was “caught burning our American flag”. Which comes after the president signed an executive order yesterday, instructing federal prosecutors to pursue criminal charges against individuals who burn American flags during protests.

    “,”elementId”:”468e9f61-b6c2-4cd1-b9bd-98df588ed13b”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1756211360000,”blockCreatedOnDisplay”:”08.29 EDT”,”blockLastUpdated”:1756213134000,”blockLastUpdatedDisplay”:”08.58 EDT”,”blockFirstPublished”:1756212997000,”blockFirstPublishedDisplay”:”08.56 EDT”,”blockFirstPublishedDisplayNoTimezone”:”08.56″,”title”:”Attorney general touts 1,094 arrests in DC”,”contributors”:[],”primaryDateLine”:”Tue 26 Aug 2025 12.40 EDT”,”secondaryDateLine”:”First published on Tue 26 Aug 2025 05.31 EDT”},{“id”:”68ada6cd8f08889309187b16″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    US House minority leader Hakeem Jeffries, a Democrat representing New York, said in a statement Donald Trump was trying to remove Lisa Cook from her position without “a shred of credible evidence that she has done anything wrong”.

    “,”elementId”:”ca4e16d5-57e0-4ff1-b8c4-a45b5fb55342″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Jeffries noted Cook’s achievement as the first black woman to serve on the Federal Reserve board, and added that “to the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House.”

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    Lisa Cook responded to Trump’s plan to remove her from the Federal Reserve board of governors “effective immediately”.

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    In a statement emailed to reporters through the office of the lawyer Abbe Lowell, she said that “no cause exists under the law, and he [Trump] has no authority” to remove her from the job to which she was appointed by Joe Biden in 2022. A reminder that Cook was ultimately appointed for a 14-year term.

    “,”elementId”:”b2486046-8db6-4bbb-b6bd-139ffee269c8″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she said in the statement.

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    Lev Menand, a law professor at Columbia law school, said Donald Trump’s attempt to fire Federal Reserve chief Lisa Cook is a “procedurally invalid removal under the statute”.

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    Menand, who authored a book about the Fed’s actions during the coronavirus pandemic, also said for-cause firings are typically related to misconduct while in office, rather than based on private misconduct from before an official’s appointment.

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    “This is a procedurally invalid removal under the statute,” he said. “This is not someone convicted of a crime. This is not someone who is not carrying out their duties.”

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    Donald Trump has said he wants to meet North Korean leader Kim Jong-un, possibly this year, in an attempt to revive the failed nuclear diplomacy of his first term as US president.

    “,”elementId”:”42d20954-5d5d-47fe-a4b5-35b19d4756e9″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “I’d like to have a meeting. I look forward to meeting with Kim Jong-un in the appropriate future,” Trump said during an occasionally awkward meeting at the Oval Office with South Korea’s new president, Lee Jae Myung, in which he raised the prospect of taking ownership of South Korean land that hosts a US military base.

    “,”elementId”:”5b1650da-cf1c-420f-9757-aaaeb2d84cd1″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Trump, who met Kim three times in his first term, hailed his relationship with the totalitarian leader and said he knew him “better than anybody, almost, other than his sister” – a reference to Kim’s younger sibling and confidante Kim Yo-jong. “Someday I’ll see him. I look forward to seeing him. He was very good with me,” Trump told reporters, saying he hoped the talks would take place this year.

    “,”elementId”:”f74689b8-2d32-4f3d-b0ad-af03a9785b1c”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Lee said the US president, who has attempted to bring peace – so far unsuccessfully – to longstanding disputes in Ukraine and the Middle East, was the “only person” who could end the decades-old standoff between South and North Korea, whose three-year war in the early 1950s ended in a truce but not a peace treaty.

    “,”elementId”:”9952cb9e-fee6-4097-82d3-3e6f5f50cbb9″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “I look forward to your meeting with Chairman Kim Jong-un and construction of Trump Tower in North Korea and playing golf,” Lee said.

    “,”elementId”:”dae7f182-16c9-4101-8d61-dacf64e234ec”},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”prefix”:”Related: “,”text”:”Trump says he hopes to meet Kim Jong-un and raises prospect of US taking over some South Korean land”,”elementId”:”cc119a32-15d3-40d9-ba57-321d0aded1cd”,”role”:”thumbnail”,”url”:”https://www.theguardian.com/us-news/2025/aug/25/trump-north-korea-kim-jong-un-lee-jae-myung”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1756202023000,”blockCreatedOnDisplay”:”05.53 EDT”,”blockLastUpdated”:1756205566000,”blockLastUpdatedDisplay”:”06.52 EDT”,”blockFirstPublished”:1756205566000,”blockFirstPublishedDisplay”:”06.52 EDT”,”blockFirstPublishedDisplayNoTimezone”:”06.52″,”title”:”Trump says he hopes to meet Kim Jong-un and raises prospect of US taking over some South Korean land”,”contributors”:[{“name”:”Justin McCurry”,”imageUrl”:”https://i.guim.co.uk/img/uploads/2017/12/28/Justin-McCurry.jpg?width=300&quality=85&auto=format&fit=max&s=d290799c20d0d8fc318b2afd8bde8115″,”largeImageUrl”:”https://i.guim.co.uk/img/uploads/2017/12/28/Justin_McCurry,_L.png?width=300&quality=85&auto=format&fit=max&s=04d05d2e2ebf2c9d7a58bd145555a76c”}],”primaryDateLine”:”Tue 26 Aug 2025 12.40 EDT”,”secondaryDateLine”:”First published on Tue 26 Aug 2025 05.31 EDT”},{“id”:”68ad83608f08d20e56323bc8″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    The Utah legislature will need to rapidly redraw the state’s congressional boundaries after a judge ruled on Monday that the Republican-controlled body drew them in violation of voters’ rights.

    “,”elementId”:”955549bf-6899-4c2a-b6f9-d659bc089cab”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    The current map, drawn in 2021, divides Salt Lake county – the state’s population center and a Democratic stronghold – among the state’s four congressional districts, all of which have since elected Republicans by wide margins.

    “,”elementId”:”bed3b5c5-d4a2-42fa-aabb-3388d738a227″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    District court judge Dianna Gibson declared the map unlawful because the legislature circumvented a commission established by voters to ensure districts aren’t drawn to favor any party.

    “,”elementId”:”9b76ab4b-7db1-48ec-90f4-27928812f917″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    New maps will need to be drawn quickly for the 2026 midterm elections. Lt Gov Deidre Henderson, the state’s top elections official, asked the courts for the case to be finalized by November to leave time for the process before candidates start filing in early January.

    “,”elementId”:”9901e30e-fdc3-46f5-a00d-2acd861ac1cd”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    But appeals promised by Republican lawmakers could help them run out the clock to possibly delay adopting new maps until 2028.

    “,”elementId”:”9a9aecc0-6674-408b-93c5-675558add166″},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”prefix”:”Related: “,”text”:”Judge rules Utah’s congressional map must be redrawn for the 2026 elections”,”elementId”:”b87dfc1f-25a2-4233-ab0c-1b4a97b07d1b”,”role”:”thumbnail”,”url”:”https://www.theguardian.com/us-news/2025/aug/25/utah-congressional-map-2026-elections”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1756201824000,”blockCreatedOnDisplay”:”05.50 EDT”,”blockLastUpdated”:1756208176000,”blockLastUpdatedDisplay”:”07.36 EDT”,”blockFirstPublished”:1756203175000,”blockFirstPublishedDisplay”:”06.12 EDT”,”blockFirstPublishedDisplayNoTimezone”:”06.12″,”title”:”Utah congressional map, which helps Republicans, must be redrawn, judge rules”,”contributors”:[],”primaryDateLine”:”Tue 26 Aug 2025 12.40 EDT”,”secondaryDateLine”:”First published on Tue 26 Aug 2025 05.31 EDT”},{“id”:”68ad82778f08a441101a9a27″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    The Trump administration’s attack on Lisa Cook’s future at the Fed was led by Bill Pulte, a Trump-appointed official leading the US Federal Housing Finance Agency, who alleged she had claimed two different properties were her primary residences when obtaining mortgages in 2021.

    “,”elementId”:”2a56f69b-cad4-4902-ae5a-ad1122d147c6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?” Pulte wrote on X, formerly Twitter. He referred the case to the Department of Justice for investigation.

    “,”elementId”:”6bb4e1cc-1b19-4fe7-8339-e5986981413e”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Trump seized on the claims before Cook had responded, writing on Wednesday on Truth Social, his social network, that she “must resign, now!!!”.

    “,”elementId”:”da72abe4-08cd-4203-a579-81af6f0675cc”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    The Senate Democratic leader, Chuck Schumer, criticised Trump’s move against Cook. “Donald Trump is playing a dangerous game of Jenga with a key pillar of our economy,” he said.

    “,”elementId”:”bd9d7c0a-4051-44d7-b485-63113c3c1b19″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “This brazen power grab must be stopped by the courts before Trump does permanent damage to national, state and local economies. And if the economy comes crashing down, if families lose their savings and Main Street pays the price, Donald Trump will own every ounce of the wreckage and devastation families feel.”

    “,”elementId”:”5d63f615-53a3-4308-ad9b-8b6df0809f13″}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1756201591000,”blockCreatedOnDisplay”:”05.46 EDT”,”blockLastUpdated”:1756208102000,”blockLastUpdatedDisplay”:”07.35 EDT”,”blockFirstPublished”:1756201607000,”blockFirstPublishedDisplay”:”05.46 EDT”,”blockFirstPublishedDisplayNoTimezone”:”05.46″,”title”:”Who is Bill Pulte? The Trump appointee leading attacks against Lisa Cook”,”contributors”:[],”primaryDateLine”:”Tue 26 Aug 2025 12.40 EDT”,”secondaryDateLine”:”First published on Tue 26 Aug 2025 05.31 EDT”},{“id”:”68ad78ed8f084154884ec12e”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Hello and welcome to the US politics live blog. I’m Tom Ambrose and I will be bringing you all the latest news lines over the next few hours.

    “,”elementId”:”15c7e042-db6c-49fa-9dae-092b6201fedc”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    We start with news that Donald Trump has been accused of “cobbling together” allegations to fire Federal Reserve governor, Lisa Cook.

    “,”elementId”:”8c5777a0-4f0d-47be-aa8e-c6fae17ca66e”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    The president said she would lose her job over allegations she committed mortgage fraud – an extraordinary move that marks the latest escalation in Trump’s attack on the central bank’s independence.

    “,”elementId”:”563738f5-38c4-4531-b8da-3c7a412f4857″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Trump wrote to Cook on Monday, telling her that he was removing her from her position “effective immediately”, based on the allegation from one of his allies that she had obtained a mortgage on a second home she incorrectly described as her primary residence.

    “,”elementId”:”944acda4-627d-4f42-999c-e7b717fa921f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Top Democrat on the US House of Representatives committee on financial services Maxine Waters said Trump’s attack on Cook was a clear continuation of his ongoing effort to “undermine the independence of the Federal Reserve” and deflect attention to signs of economic challenges caused by his policies. Waters said:

    “,”elementId”:”b58eae48-1bfe-4241-8e58-341931b2411f”},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

    \n

    Their latest target is Dr Lisa Cook, a highly qualified, trailblazing economist, and the first Black woman to serve on the Federal Reserve’s Board of Governors since Congress created it in 1913.

    \n

    Let me be very clear, the allegations against Dr Cook have been cobbled together as a pretext to try to replace her with someone who will be loyal first to Trump instead of the US Constitution or US law.

    \n

    “,”elementId”:”0a3df119-84bc-48c3-8197-32992d0a0452″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Cook responded several hours later in a statement emailed to reporters through the law office of the lawyer Abbe Lowell, saying of Trump that “no cause exists under the law, and he has no authority” to remove her from the job to which she was appointed by Joe Biden in 2022.

    “,”elementId”:”00b061c9-5764-42fa-8cc9-5901011a6c36″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    She said:

    “,”elementId”:”7a65d7a7-25b4-47e5-ab4f-0518d6a393a5″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

    \n

    I will continue to carry out my duties to help the American economy.

    \n

    “,”elementId”:”7d40ee74-e1ab-443c-a936-2312b171055a”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Lowell said Trump’s “demands lacked any proper process, basis or legal authority”, adding:

    “,”elementId”:”950dc02c-e0a7-41a1-aed6-6780ede6aa15″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

    \n

    We will take whatever actions are needed to prevent his attempted illegal action.

    \n

    “,”elementId”:”055c61ff-c7cd-4adf-b2dd-34c077d42b8f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Trump posted the full text of the letter on social media on Monday night. In it, he said that he found “sufficient cause” in the allegation against her to remove her from her position.

    “,”elementId”:”ff988f93-fad7-4e66-a57f-65edff8e80bc”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Meanwhile, top Democratic lawmakers furiously denounced Trump’s attempt to fire Cook. Elizabeth Warren, a Massachusetts senator and ranking member on the Senate banking, housing, and urban affairs committee, called it “the latest example of a desperate president searching for a scapegoat to cover for his own failure to lower costs for Americans”.

    “,”elementId”:”c75dfa63-b4fa-4b13-b04e-cdc4a05bc8e9″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    “It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court,” Warren said.

    “,”elementId”:”21c2d051-0a42-4803-b2bc-c91ee1655dbd”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    Read our full report here:

    “,”elementId”:”00ce9a16-5bf2-439a-badb-e5f7e2e88d1f”},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”prefix”:”Related: “,”text”:”Trump moves to fire Fed governor Lisa Cook in escalating attack on bank’s independence”,”elementId”:”b6d20558-2ef6-4895-ab26-836c21f4f7b8″,”role”:”thumbnail”,”url”:”https://www.theguardian.com/business/2025/aug/25/trump-fires-federal-reserve-governor-lisa-cook”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    In other developments:

    “,”elementId”:”cc735b6b-e162-464c-9f14-7af2b11fb0fa”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

      \n

    • \n

      Unprompted, Trump said three times that he plans to rebrand the “Department of Defense” by returning to the pre-1947 name, the “Department of War”.

    • \n

    • \n

      In a court filing, the Trump administration said that it intends to withdraw federal approval for an offshore wind farm off the coasts of Maryland and Delaware.

    • \n

    • \n

      A large bruise on the back on Trump’s right hand, which the president appeared to be hiding, poorly, under a daub of makeup last week, was clearly visible during public appearances, renewing speculation that the White House might be concealing information about his health.

    • \n

    • \n

      California Republicans went to court to challenge a plan devised by the state’s governor, Gavin Newsom, to redraw congressional boundaries in response to a redistricting plan that aims to give Republicans in Texas five more US House seats.

    • \n

    • \n

      Video recorded for a Fox News streaming documentary about Trump proves that the president lied when he told reporters that Maryland’s governor, Wes Moore, had hugged and praised him at the Army-Navy football game in December.

    • \n

    • \n

      The Utah legislature will need to rapidly redraw the state’s congressional boundaries after a judge ruled Monday that the Republican-controlled body drew them in violation of voters’ rights.

    • \n

    “,”elementId”:”2feac48d-ae83-4b46-8c9c-f4b8eaa6f778″}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1756200697000,”blockCreatedOnDisplay”:”05.31 EDT”,”blockLastUpdated”:1756200335000,”blockLastUpdatedDisplay”:”05.25 EDT”,”blockFirstPublished”:1756200697000,”blockFirstPublishedDisplay”:”05.31 EDT”,”blockFirstPublishedDisplayNoTimezone”:”05.31″,”title”:”Trump accused of ‘cobbling together’ mortgage fraud allegations to fire Lisa Cook”,”contributors”:[],”primaryDateLine”:”Tue 26 Aug 2025 12.40 EDT”,”secondaryDateLine”:”First published on Tue 26 Aug 2025 05.31 EDT”}],”filterKeyEvents”:false,”id”:”key-events-carousel-mobile”,”absoluteServerTimes”:false,”renderingTarget”:”Web”}”>

    Key events

    CDC quietly scales back surveillance program for food-borne illnesses – report

    The US Centers for Disease Control and Prevention (CDC) quietly scaled back a critical surveillance program for food-borne illnesses nearly two months ago, NBC News reports.

    Per NBC’s report:

    As of 1 July, the Foodborne Diseases Active Surveillance Network (FoodNet) program – a federal-state partnership – has reduced surveillance to just two pathogens: salmonella and Shiga toxin-producing E. coli (STEC), a spokesperson for the CDC told NBC News.

    Before July, the program had been tracking infections caused by six additional pathogens: campylobacter, cyclospora, listeria, shigella, vibrio and Yersinia. Some of them can lead to severe or life-threatening illnesses, particularly for newborns, pregnant people, and those who have weakened immune systems.

    Monitoring for the six pathogens is no longer required for the 10 states that participate in the program, though those states aren’t precluded from conducting surveillance on their own.

    Share

    Trump’s cabinet meeting is under way now, we’ll bring you any key news lines here.

    Share

    Updated at 12.40 EDT

    As Donald Trump’s cabinet meeting gets going, here’s a recap of the day so far

    • The lawyer for Lisa Cook, the Federal Reserve governor who Donal Trump has moved to fire, said she will file a lawsuit challenging the president’s attempt to remove her from her position. Abbe Lowell, Cook’s counsel, said in a statement to reporters that Trump’s “attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this action.”

    • Earlier, Cook was steadfast in dismissing Trump’s letter that called for her removal “effective immediately”. The Federal Reserve governor is serving a 14-year terms, and said that she will not resign. “I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she added.

    • Since the president posted Cook’s firing letter, a slew of leading Democratic lawmakers have fired back at Trump’s plans to remove the Federal Reserve governor. Chuck Schumer, the senate minority leader, accused the president of playing “a dangerous game of Jenga with a key pillar of our economy.”

    • The Trump administration’s ongoing showdown with the judiciary continued today, when A federal judge in Virginia has dismissed an unprecedented lawsuit, filed by the justice department, against the entire federal district bench in Maryland. The justice department sued all 15 judges over two standing orders that slowed down the administration’s deportation efforts. Since the government had sued all the Maryland justices, Judge Thomas Cullen – a Trump appointee who normally sits in Virginia – presided over the case. In his ruling, Cullen said that the executive branch should appeal the district court’s order, saying it was an inappropriate course of action.

    • Back in DC, attorney general Pam Bondi said that there have been 1,094 arrests in nation’s capital since the federal law enforcement surge that began earlier this month. Bondi also noted that “not a single carjacking has occurred over the past week.”

    Share

    Lisa Cook’s lawyer says that she plans to file a lawsuit challenging Trump’s attempted firing

    The lawyer for Lisa Cook, the Federal Reserve governor who Donal Trump has moved to fire, said she will file a lawsuit challenging the president’s attempt to remove her from her position.

    “President Trump has no authority to remove Federal Reserve governor Lisa Cook,” lawyer Abbe Lowell said in a statement emailed to reporters. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this action.”

    Share

    Updated at 12.07 EDT

    Judge dismisses unprecedented DoJ lawsuit against all Maryland federal judges

    A federal judge in Virginia has dismissed an unprecedented lawsuit, filed by the justice department, against the entire federal district bench in Maryland.

    It comes after the Maryland chief judge, George L Russell III, issued two standing orders in May which slowed down the Trump administration’s efforts to quickly deport immigrants. The DoJ argued that this ultimately impeded the president from enforcing immigration laws.

    Since the government had sued all the Maryland justices, Judge Thomas Cullen – a Trump appointee who normally sits in Virginia – presided over the case. In his ruling, Cullen said that the executive branch should appeal the district court’s order, instead of suing all 15 judges.

    “Whatever the merits of its grievance with the judges of the United States District Court for the District of Maryland, the Executive must find a proper way to raise those concerns,” Cullen wrote.

    Share

    Updated at 11.55 EDT

    Oliver Milman

    The Democratic governor of Illinois, JB Pritzker, has hit back at Donald Trump for commenting on his weight, saying the Republican president is himself “not in good shape” amid escalating tension over the possible deployment of the national guard on the streets of Chicago.

    Trump said on Monday that Pritzker “ought to spend more time in the gym”. While successfully campaigning in 2024 for a second presidency that began in January, Trump said that the Illinois governor was “too busy eating” to lead his state.

    But Pritzker responded forcefully to Trump’s scorn, telling reporters that: “It takes one to know one on the weight question. And the president, of course, himself, is not in good shape. So, he ought to respond to that from me.”

    Pritzker added Trump does not read and only watches television – so the governor called upon Fox News or Newsmax to relay his comments to the president.

    “I would say also that his personal attacks on me are just evidence of a guy who’s still living in fifth grade,” Pritzker said. “He’s the kind of bully that throws invectives at people – because he knows that what he’s saying is actually commentary on himself.”

    The traded insults between the two politicians come as Trump considers whether to federalize the national guard and deploy it upon the streets of Chicago to combat what he portrays as a crime wave in the city. Leaders of Chicago and Illinois have said such a move would be unnecessary overreach.

    Share
    Lauren Aratani

    Lauren Aratani

    Donald Trump and his allies have been accused of executing a “pattern of lawfare” akin to those exerted by authoritarian regimes in Hungary and Russia after adopting a new strategy to target political opponents: allegations of mortgage fraud.

    First it was Letitia James, the New York attorney general, then it was Adam Schiff, a Democratic California senator. Now, the president is now targeting Federal Reserve governor Lisa Cook, telling her that he was removing her from her position “effective immediately”.

    Cook, the first Black woman to be appointed a Fed governor, was appointed in 2022 by Joe Biden. Her 14-year term is not due to expire until 2038.

    Leading this new strategy is Bill Pulte, heir to a home construction company fortune, appointed by Trump to lead the Federal Housing Finance Agency, which oversees regulations of federal housing lenders Fannie Mae and Freddie Mac.

    Pulte has used his role to publicly accuse Trump’s opponents, publishing extraordinary allegations on social media and referring them for investigation.

    He alleges that James, Schiff and Cook all committed what is known as owner-occupancy fraud, when a person claims a second home or investment property is actually a primary residence to get better mortgages. Lenders are more inclined to give borrowers a lower mortgage on a primary residence, compared with a second home or investment property.

    James and Schiff have denied the allegations. While Cook has pledged to “provide the facts” after gathering the relevant information.

    Share

    Top congressional Democrats fire back against Trump’s plans to remove Federal Reserve governor

    A slew of leading Democratic lawmakers have fired back at Donald Trump’s plans to fire Federal Reserve governor Lisa Cook.

    Chuck Schumer, the senate minority leader, accused the president of playing “a dangerous game of Jenga with a key pillar of our economy.” Schumer said that by attempting to remove Cook and install a loyalist, Trump would “shred” the Fed of its independence, and put “every American’s savings and mortgage at risk.”

    The ranking member on senate banking committee, Elizabeth Warren, called Trump’s letter announcing Cook’s firing an “authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.”

    As my colleague, Callum Jones, notes, the supreme court suggested earlier this year that the president did not have power to fire, without cause, governors of the US central bank. The Federal Reserve acts as an independent agency, whose members do not serve at the pleasure of the president.

    Meanwhile house minority leader, Hakeem Jeffries, said that Trump was trying to remove Lisa Cook from her position without “a shred of credible evidence that she has done anything wrong”. Jeffries noted Cook’s achievement as the first Black woman to serve on the Federal Reserve board, and added that “to the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House.”

    Share

    Updated at 10.43 EDT

    Twenty years on – Hurricane Katrina haunts New Orleans as Trump guts disaster aid

    Dharna Noor

    The response to Hurricane Katrina, which stuck the Gulf Coast 20 years ago this week, was a catastrophe for US disaster management, with the Federal Emergency Management Agency (Fema) failing to reach victims quickly enough, or provide them with sufficient aid.

    This month, I travelled to New Orleans, which was badly affected by the storm and the response. There, victims and other disaster experts told me they are afraid the US has – under Trump – walked back 20 years of progress in the disaster management field.

    “We want more support, more help, not for them to take all that help away,” Betina James, whose home was destroyed by Katrina, told me.

    Read more below:

    Share

    Updated at 10.20 EDT

    John Bolton, whose home and office were searched by the FBI on Friday, has posted on social media today, comparing the raid to the Donald Trump’s diplomatic strategy in Ukraine.

    The president’s former national security adviser turned political adversary wrote:

    Donald Trump’s Ukraine policy today is no more coherent than it was last Friday when his administration executed search warrants against my home and office. Collapsing in confusion and haste, Trump’s negotiations may be in their last throes, along with his Nobel Peace Prize.

    Bolton published an op-ed in the Washington Examiner yesterday expanding on, what he describes as, Trump’s “incoherent” policy plan.

    Share

    More than 100 organizations demand release of American-Palestinian teen held in Israeli prison

    Joseph Gedeon

    A few weeks ago, I broke the story about Mohammed Zaher Ibrahim, a 16-year-old dual American-Palestinian citizen who has been held in an Israeli prison since February over allegations of rock throwing.

    Today, over 100 US human rights, faith-based and civil rights organizations launched a major pressure campaign by signing a letter demanding secretary of state Marco Rubio immediately secure his release.

    The coalition – which includes the American-Arab Anti-Discrimination Committee, the Center for Constitutional Rights, and Pax Christi USA – is warning that Ibrahim’s deteriorating health puts “his life on the line.”

    The teenager, who splits his time between the West Bank and Palm Bay, Florida, was 15 when he was arrested from his family’s home in the West Bank. Since then, he’s developed scabies, lost at least 25 pounds, and spent his 16th birthday behind bars.

    Read more below:

    Share

    Attorney general touts 1,094 arrests in DC

    Attorney general Pam Bondi said that there have been 1,094 arrests in DC since the federal law enforcement surge that began earlier this month. Bondi noted that “not a single carjacking has occurred over the past week” in the nation’s capital.

    She also said that authorities arrested a man who was “caught burning our American flag”. Which comes after the president signed an executive order yesterday, instructing federal prosecutors to pursue criminal charges against individuals who burn American flags during protests.

    Share

    Updated at 08.58 EDT

    House minority leader Jeffries hits back at Trump plan to fire Federal Reserve governor

    US House minority leader Hakeem Jeffries, a Democrat representing New York, said in a statement Donald Trump was trying to remove Lisa Cook from her position without “a shred of credible evidence that she has done anything wrong”.

    Jeffries noted Cook’s achievement as the first black woman to serve on the Federal Reserve board, and added that “to the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House.”

    Share

    Updated at 08.42 EDT

    ‘No cause exists under the law’: Federal Reserve governor responds to Trump’s move to fire her

    Lisa Cook responded to Trump’s plan to remove her from the Federal Reserve board of governors “effective immediately”.

    In a statement emailed to reporters through the office of the lawyer Abbe Lowell, she said that “no cause exists under the law, and he [Trump] has no authority” to remove her from the job to which she was appointed by Joe Biden in 2022. A reminder that Cook was ultimately appointed for a 14-year term.

    “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she said in the statement.

    Share

    Updated at 08.28 EDT

    We’ll hear from the president at 11am ET today, when he hosts a meeting with his cabinet. He’ll take questions from the press, so we’ll make sure to bring you the latest when that kicks off.

    The president is also set to meet with Indiana Republican lawmakers later today, around 1pm ET, to talk more about the redistricting push in the state.

    Share

    The United States has agreed in principle to exempt Indonesian exports of cocoa, palm oil and rubber from the 19% tariff imposed by president Donald Trump since 7 August, Indonesia’s top trade negotiator said on Tuesday.

    The exemption will take effect once both sides reach a final agreement, but no timeline has been set because the US is busy in tariff talks with other countries, Airlangga Hartarto, who is also the chief economic minister, told Reuters.

    The two countries also discussed potential US investment in fuel storage in Indonesia in partnership with the Southeast Asian nation’s sovereign wealth fund Danantara and state energy firm Pertamina, Airlangga said in an interview.

    “We are waiting for their response, but during the meeting, basically, the principal [exemption] has been agreed for products not produced in the US, such as palm oil and cocoa and rubber … it will be zero or close to zero,” he added.

    Share

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