Fed responds to Trump effort to fire Lisa Cook

The Federal Reserve on Tuesday said it would abide by any court decision on whether President Donald Trump has the legal authority to fire Board of Governors member Lisa Cook.

The Fed, in a statement from a spokesperson, noted that “Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System.”

The statement was the Fed’s first response to Trump’s announcement on Monday night that he was removing Cook as Fed governor because of allegations she committed mortgage fraud.

The spokesperson did not explicitly criticize Trump for trying to remove Cook.

But the statement pointedly noted that “Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only ‘for cause.’ “

“Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people,” the statement said.

Trump separately told reporters on Tuesday that he would abide by any court decision on Cook’s fate at the Fed.

“I abide by the court, yeah, I abide by the court,” he said, while also predicting that the Fed’s board would soon be comprised by a majority of his appointees after he selects Cook’s replacement.

If Trump gains a majority of appointees, he might have better success at getting the Fed to lower interest rates sharply, as he has repeatedly demanded.

Any federal court challenge by Cook to her termination is likely to end with the Supreme Court issuing the final word on the dispute.

In the statement Tuesday, the Fed spokesperson said, “The Federal Reserve System was established by Congress to carry out its statutory mandates — including promoting maximum employment, stable prices, and a well-functioning financial system.”

“The Federal Reserve will continue to carry out its duties as established by law,” the spokesperson said.

“As always, the Federal Reserve will abide by any court decision,” they said.

“The Federal Reserve reaffirms its commitment to transparency, accountability, and independence in the service of American families, communities, and businesses.”

Cook’s lawyer, Abbe Lowell, said Tuesday that Trump “has no authority to remove” Cook.

“His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis,” Lowell said. “We will be filing a lawsuit challenging this illegal action.”

Cook said Monday night that she would keep working at the Fed despite Trump’s claim he had the power to remove her.

The Fed did not respond to CNBC’s query about whether Cook was working Tuesday at the central bank’s headquarters in Washington, D.C., or remotely.

— CNBC’s Erin Doherty contributed to this story.