The latest ethics disclosure filing shows that Federal Reserve Board member Lisa Cook incurred over $1.3 million in legal and security expenses following last year’s removal efforts initiated by the Trump administration. The U.S. Supreme Court is expected to soon rule on whether the president has the authority to remove her from the Federal Reserve Board under the current grounds.
The fee is reimbursed by an external institution.
The documents show that most of Cook’s expenses were covered by external organizations, with the nonprofit State Democracy Defenders Fund and Contina Impact paying nearly $1.2 million for her legal services.
Contina Impact also provided approximately $144,000 in security expenses. The disclosure documents also mention that Cook received additional, smaller-scale pro bono legal and security support.
The dispute arose from the dismissal and allegations.
In August last year, Trump attempted to remove Cook from the Federal Reserve Board, alleging her involvement in mortgage fraud. These claims originated from allegations made by Bill Lockyer, Director of the Federal Housing Finance Agency.
Cook denied any misconduct and filed a lawsuit to block her removal. During the legal proceedings, she remained in her position as a Federal Reserve governor.
According to reports, after the related allegations became public, Cook's residence was also exposed, further increasing her security needs.
The Supreme Court will issue a ruling.
The Supreme Court is expected to issue a ruling on this case soon, focusing on whether the president has the authority to remove a Federal Reserve governor based on the reasons cited by Trump. The outcome is also closely watched by markets, as the case touches on the independence of the Federal Reserve and the president’s authority over personnel appointments at independent agencies.
The disclosure 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 rules, government officials may be reimbursed for expenses related to their official duties.