Newly disclosed ethics documents reveal that Federal Reserve Governor Lisa Cook incurred over $1.3 million in legal and security expenses following the Trump administration's attempt to remove her from the Fed's board last year. The U.S. Supreme Court is expected to soon rule on whether the president has the authority to remove her from the Fed's board on existing grounds.
Expenses will be reimbursed by an external organization.
The documents show that most of Cook's expenses were covered by external organizations. Among them, the nonprofit State Democracy Defenders Fund and Contina Impact paid nearly $1.2 million for his legal services.
Contina Impact also provided approximately $144,000 in security costs. The disclosure also mentions that Cook received other smaller, pro bono legal and security support.
The controversy stemmed from the dismissal and accusations.
Trump attempted to remove Cook from the Federal Reserve Board of Governors last August, alleging her involvement in mortgage fraud. These allegations stemmed from accusations made by Bill Pulte, president of the Federal Housing Finance Agency.
Cook denied any wrongdoing and filed a lawsuit to block her removal from office. She remained a Federal Reserve governor during the trial.
According to reports, Cook's address was also exposed after the allegations were made public, which further increased her security needs.
The Supreme Court will make a ruling.
The Supreme Court is expected to make a decision on the case soon, focusing on whether the president has the authority to remove Federal Reserve governors on the grounds raised by Trump. This outcome is also being closely watched by the market, as the case touches on the independence of the Federal Reserve and the president's authority over personnel appointments within an independent institution.
The disclosed documents also show that the two properties involved in Trump's allegations are still held by Cook, each valued at less than $1 million. Under U.S. federal ethics regulations, government officials are eligible for reimbursement for expenses incurred in the course of their duties.
