Fed Governor Lisa Cook sues Trump as he tries to fire her amid tensions at the central bank: reports

Federal Reserve Board Governor Lisa Cook sued President Donald Trump after he tried to fire her from the central bank, according to news reports.

Cook filed that lawsuit in Washington, D.C., and named Fed Chair Jerome Powell and the Board of Governors as defendants, multiple news outlets reported on Thursday.

Cook's move is the latest as tensions flare between the central bank and the president. Trump has rallied against Powell for not lowering interest rates and has threatened to fire him. A Fed board member can only be removed "for cause" as a way to protect the central bank's independence from politics. 

Some have said that firing Cook is a way to get a majority at the Fed that could then support reducing the interest rate.

"The President could push his majority to reject reserve bank presidents unless they agree to back lower rates and are comfortable with more White House influence over monetary policy," investment bank TD Cowen said in a note on Tuesday. "That would give Trump a more cooperative FOMC (Federal Open Market Committee)."

Earlier this month, Trump tapped Stephen Miran, who has been friendly toward crypto, to serve on the Fed Board of Governors, replacing a seat previously held by Adriana Kugler. He would still need to be confirmed by the Senate. Miran has suggested that crypto regulations need to be streamlined. Miran has also reportedly criticized Powell.

The Senate Banking Committee is prepping to hold a hearing next week on Miran's confirmation, according to Bloomberg.

TD Cowen's Jaret Seiberg said it is likely that both Miran and Cook's potential replacement join Fed Vice Chair Michelle Bowman and Fed Gov. Chris Waller in interest rate cuts.