US Fed governor Lisa Cook sues Trump over attempt to fire her

Lawsuit is a major escalation of the growing clash between the White House and the Fed

Federal Reserve member Lisa Cook has resisted pressure from US president Donald Trump to resign. Picture: AP Photo/Manuel Balce Ceneta 

US Federal Reserve governor Lisa Cook sued President Donald Trump over his attempt to fire her for alleged mortgage fraud, kicking off a historic fight over independence of the US central bank.

Mr Trump’s claim that Ms Cook may have lied on mortgage applications to get better loan terms on a pair of homes is not sufficient “cause” to fire her because the alleged conduct is unproven and took place before her Senate confirmation, Cook said in a lawsuit Thursday.