Central banks

Fed: Lisa Cook’s supporters are covering the legal costs to challenge Trump

The governor has received donations totalling 1.2 million dollars towards her legal defence

by Lisa Tomaselli

FILE PHOTO: Federal Reserve Governor Lisa Cook (left), accompanied by lawyer Abbe Lowell, walks outside the U.S. Supreme Court, as Supreme Court justices consider U.S. President Donald Trump's effort to fire her, in Washington, D.C., U.S., January 21, 2026. REUTERS/Nathan Howard/File Photo REUTERS

2' min read

Translated by AI
Versione italiana

2' min read

Translated by AI
Versione italiana

The allegations made by Donald Trump against Lisa Cook, a member of the Federal Reserve Board, have proved costly. Ms Cook has revealed that substantial donations have been made to fund her legal defence: nearly 1.2 million dollars.

The case and the allegations

Cook began her term in 2022, becoming the first African-American woman to be appointed to the Federal Reserve Board of Governors. Last August, President Trump attempted to remove her from office on the basis of alleged irregularities relating to property mortgages. These allegations were immediately contested by the governor. The lower courts have so far blocked the attempt to dismiss her, and the matter has now reached the Supreme Court, which is expected to rule by the end of the month.

Loading...

The American economist’s declaration, published by the Office of Government Ethics, shows payments for legal services totalling $696,346 from the State Democracy Defenders Fund and $477,951 from the non-profit organisation Contina Impact. The latter also paid $143,908 for security services, whilst similar expenses were also incurred by three of Cook’s personal friends.

The State Democracy Defenders Fund is currently under scrutiny from Republicans in Congress, who are questioning whether the organisation’s use of funds is consistent with its publicly stated aims.

The Cook case forms part of a wider context of tension between the White House and the Federal Reserve during Trump’s second term. The President has repeatedly criticised the central bank for its reluctance to cut interest rates, whilst the Fed has continued to advocate a cautious monetary policy. Political pressure has also been directed at former Chair Jerome Powell, who found himself at the centre of an investigation by the Department of Justice that has since largely been concluded.

The Fed’s new course

The conclusion of the Powell affair has paved the way for Kevin Warsh’s confirmation as head of the Federal Reserve. Warsh chaired his first meeting of the Federal Open Market Committee this week, leaving interest rates unchanged. The decision disappointed some market participants, who had been expecting clearer signals of a possible rate cut, and confirmed the central role of interest rates in the clash between politics and the central bank.

Cook’s legal dispute is seen as a crucial test of the Federal Reserve’s independence. The Supreme Court’s ruling could define the limits within which a president may remove a governor of the central bank. The case, therefore, goes beyond Cook’s personal situation and concerns the protection of monetary policy from direct political pressure.

Copyright reserved ©
Loading...

Brand connect

Loading...

Newsletter

Notizie e approfondimenti sugli avvenimenti politici, economici e finanziari.

Iscriviti