The U.S. Justice Department is urging a federal judge to allow the immediate removal of Federal Reserve Governor Lisa Cook while she fights to keep her job, dismissing as “baseless″ Cook’s claim that the president is attempting to fire her so that he can seize control of the independent central bank

FILE - Federal Reserve Board of Governors member Lisa Cook listens during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

WASHINGTON (AP) — The U.S. Justice Department urged a federal judge on Thursday to allow the immediate removal of Federal Reserve Governor Lisa Cook while she fights to keep her job, dismissing as "baseless'' Cook's claim that the president is attempting to fire her so that he can seize control of the independent central bank.

Trump said he was firing Cook on Aug. 25 after one of his appointees alleged that she committed mortgage fraud related to two properties she purchased in 2021, before she joined the Fed. Cook is accused of falsely listing two properties as “primary residences.” Down payment requirements are often more lenient and mortgage rates lower for primary residences versus a second home or investment property.

In a filing in U.S. District for Washington D.C. this week, Cook’s lawyers argued that firing her was unlawful because presidents can only fire Fed governors “for cause,” which has typically meant inefficiency, neglect of duty, or malfeasance while in office. They also said she was entitled to a hearing and a chance to respond to the charges before being fired, but was not provided either. Attorneys said in the court filing that Cook never committed mortgage fraud.

Responding on Thursday, the Justice Department said the president has the discretion to fire Cook for cause and that his decisions cannot be reviewed by the courts.

The case could become a turning point for the 112-year old Federal Reserve, which was designed by Congress to be insulated from day-to-day political influence. Economists prefer independent central banks because they can do unpopular things like lifting interest rates to combat inflation more easily than elected officials.

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FILE - Board of Governors of the Federal Reserve member Lisa Cook, speaks during a conversations with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management, the hospitality industry, and the housing and education sectors at the Federal Reserve building, Sept. 23, 2022, in Washington. (AP Photo/Manuel Balce Ceneta, File)

Trump has repeatedly attacked Fed Chair Jerome Powell and the other members of the Fed’s interest-rate setting committee for not cutting the short-term interest rate they control more quickly.

Many economists worry that if the Fed falls under the control of the White House, it will keep its key interest rate lower than justified by economic fundamentals to satisfy Trump’s demands for cheaper borrowing.

Norm Eisen, attorney of Lisa Cook, a governor on the Federal Reserve Board, arrives at the federal courthouse in Washington, Friday, Aug. 29, 2025. (AP Photo/Jose Luis Magana)