Lisa Cook believes that Trump is trying to get her removed from the Federal Reserve (Fed) board of directors in an unlawful manner. She has also requested a kind of temporary injunction in order to prevent her from being dismissed from her position during the ongoing legal process.
On Friday, both sides were given the opportunity to present their positions in a first hearing, but the judge has not made any decision. Both parties were asked to submit more documents next week, according to CNBC.
Donald Trump claims that Cook has not handled her mortgage applications correctly and therefore wants to fire her. In her defense, Lisa Cook would emphasize that it is a matter of an "unintentional administrative mistake" reports the news agency Bloomberg.
Bill Pulte, head of the Federal Housing Finance Agency, expanded the allegations to also apply to a third home.
In a statement, Cook's lawyer Abbe Lowell dismissed the whole thing as "vague, unfounded allegations" that lack relevance to her role within the Fed.
"And they do not in any way justify her removal from the board."
Cook's lawsuit on Thursday is yet another escalation of the conflict between the White House and the central bank, where Trump is demanding lower interest rates but the Fed is asserting its independent decision-making power.
