Federal Reserve statement: Board members can only be removed for "just cause," and the Federal Reserve will comply with any court ruling

The Federal Reserve stated on Tuesday that it will comply with any court ruling regarding whether President Trump has the legal authority to dismiss Federal Reserve Board member Lisa Cook.

The Federal Reserve noted in a spokesperson's statement:

Cook has indicated through her private attorney that she will promptly challenge this action in court and seek a judicial ruling to affirm her right to continue serving as a Senate-confirmed member of the Federal Reserve Board.

The spokesperson did not directly criticize Trump's actions, but the statement clearly pointed out:

The Federal Reserve System was established by Congress to fulfill its statutory mission—including promoting maximum employment, price stability, and a well-functioning financial system.

Congress, through the Federal Reserve Act, stipulates that board members serve long, fixed terms and that the president can only remove them for "just cause."

The long terms of board members and the protection against arbitrary dismissal are important safeguards to ensure that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people.

The Federal Reserve will continue to fulfill its responsibilities in accordance with the law. As always, the Federal Reserve will comply with any court rulings. The Federal Reserve reaffirms its commitment to transparency, accountability, and independence in serving American families, communities, and businesses.

This is the Federal Reserve's first response following Trump's announcement on Monday evening to dismiss Cook.

Trump previously stated that the reason for dismissing Cook was her alleged mortgage fraud. Trump also told reporters on Tuesday that he would comply with any court ruling regarding Cook's status at the Federal Reserve:

I will comply with the court's ruling, yes, I will comply with the court's ruling. He also predicted that as he selects Cook's successor, the Federal Reserve Board will soon be dominated by his appointees.

If Cook files a lawsuit in federal court regarding her dismissal, the final ruling may ultimately be made by the U.S. Supreme Court.

Cook's attorney, Abbe Lowell, stated on Tuesday that Trump has no authority to dismiss Cook. "He is attempting to fire her based solely on a transfer letter, which has no basis in fact or law. We will file a lawsuit to challenge this illegal action."

Cook herself stated on Monday evening that despite Trump's claims of having the authority to dismiss her, she will continue to work at the Federal Reserve.

The Federal Reserve did not respond to questions about whether Cook was working at the Federal Reserve headquarters in Washington, D.C., or remotely on Tuesday.

White House spokesperson Kush Desai stated in a statement:

The president exercised his lawful authority under Title 12, Section 242 of the U.S. Code to remove a member of the Federal Reserve Board for just cause. The president determined that the board member faced credible allegations of lying in financial documents, and she holds a highly sensitive position overseeing a financial institution, thus providing grounds for dismissal