President Donald Trump made headlines earlier this week when he fired Federal Reserve Governor Lisa Cook over allegations that she committed mortgage fraud.

However, Cook has responded to her termination by filing a lawsuit against the president, calling his move "unprecedented and illegal."

Cook seeks restraining order

According to NBC News, Cook is seeking a "declaration that President Trump’s August 25, 2025 purported firing ... is unlawful and void and that Governor Cook remains an active member of the Board of Governors of the Federal Reserve."

She also wants the court to find that "an unsubstantiated allegation of mortgage fraud prior to a Governor’s confirmation is not cause for removal."

Finally, the ousted Federal Reserve governor wants an emergency temporary restraining order which would allow her to remain on the job "until such time as the Court can further consider the merits of her claims."

Cook's filing notes that "President Trump did not purport to remove Governor Cook for 'inefficiency, neglect of duty, or malfeasance in office,' or for any actions that were carried out in the course of her official duties."

Fraud allegations emerge

The Hill reported that Cook, who was appointed by former President Joe Biden in 2022, faced accusations of impropriety from Federal Housing Finance Agency head Bill Pulte.

Specifically, Pulte maintained that Cook committed mortgage fraud by listing two separate homes as her primary residence.

He included photographs in a report which allegedly showed Cook's signature on documents relating to a home in Michigan as well as another residence that was described as an "Atlanta condo."

For his part, Trump sent a letter to Cook on Monday in which he laid out his grounds for dismissing her as a Federal Reserve governor.

Trump cites "deceitful and potentially criminal conduct"

"I have determined that there is sufficient cause to remove you from your position," Trump told Cook. "The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks."

🚨 President Donald J. Trump relieves Federal Reserve Governor Lisa Cook of her position pic.twitter.com/tJV8m4mlHW

— Rapid Response 47 (@RapidResponse47) August 26, 2025

"The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve," he stressed.

"In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity," the president went on to add.