Federal Reserve Governor Lisa Cook is suing Donald Trump to prevent her removal from office. Trump alleges mortgage fraud, but Cook's lawsuit argues this is a pretext to influence Fed interest rate decisions. The suit claims the alleged errors were clerical and don't justify removal under the Federal Reserve Act's 'cause' requirement. Cook's team avoids detailing the mortgage applications to avoid legitimizing Trump's claims. The legal battle's outcome could shift the Fed's political balance, potentially giving Trump a majority.

Prepared by Christopher Adams and reviewed by editorial team.