The Department of Justice has launched an investigation against Fed Governor Lisa Cook in the wake of her lawsuit against the Trump administration. So far, department has issued grand jury subpoenas in Georgia and Michigan, officials familiar with the matter said.
The move comes weeks after Donald Trump announced he had fired Cook, accusing her of mortgage fraud for listing two properties as primary residences. Cook has denied wrongdoing and said the allegations are a pretext for removing her from the central bank because she resisted Trump’s pressure to raise interest rates.
Cook has sued Trump, asking a judge to block her dismissal while the case proceeds. The Fed’s next policy meeting is scheduled for Sept. 16. Her lawsuit argues the White House is attempting to “vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve.”
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” her attorney Abbe Lowell said in a statement. “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 illegal action.”
Federal Independence in Question
The subpoenas are part of what Cook’s supporters say is a broader intimidation campaign against independent officials who have resisted Trump’s agenda. Critics say the investigation underscores Trump’s effort to consolidate control of federal agencies that are traditionally insulated from politics.
Cook, the first Black woman appointed to the Fed’s board, has continued to serve while her case moves forward. She is not the only official facing pressure. CDC Director Susan Monarez has also resisted Trump’s directives, though she too is facing scrutiny from the administration.
Whether the Justice Department’s probe will alter their stance remains unclear, but legal experts say the outcome could shape the future independence of both the Fed and other federal institutions.
