The Federal Reserve (Fed) issued a statement following President Donald Trump’s removal of Fed Board Member Lisa Cook. The Fed confirmed its intention to pursue legal action, citing the clear mandate within the Federal Reserve Act for long-term terms and only dismissal with ‘good cause’. This decision was prompted by a criminal investigation launched by the Justice Department regarding alleged false statements on mortgage applications made by Cook while he served at the Fed. The Justice Department alleges that Cook falsely claimed these properties were his primary residence when seeking lower interest rates and favorable loan terms before joining the Federal Reserve in 2022.