US President Donald Trump has announced he will immediately remove Federal Reserve governor Lisa Cook. The decision intensifies his ongoing clash with the central bank.<\/p>\n\n\n\n
Trump claimed Cook provided false information on mortgage documents and argued that constitutional authority allows him to dismiss her. Cook rejected the claim, insisting the president lacks legal power to fire her. She confirmed she will not resign.<\/p>\n\n\n\n
No US president has previously attempted to remove a Federal Reserve governor. Trump\u2019s action follows months of criticism toward the Fed and its chair Jerome Powell. He accuses Powell of refusing to lower interest rates quickly.<\/p>\n\n\n\n
Cook sits on the seven-member board and participates in the twelve-member committee that sets US interest rates.<\/p>\n\n\n\n
The Fed\u2019s decisions affect borrowing costs, bank savings rates, and global markets. Central banks worldwide monitor US policy when shaping their own monetary strategies.<\/p>\n\n\n\n
At the July meeting, Cook voted with Powell and most members to maintain rates. She was appointed in 2022 by President Joe Biden, becoming the first African American woman to hold the position.<\/p>\n\n\n\n
Trump\u2019s announcement is likely to trigger legal challenges. Experts say the White House must demonstrate in court that valid grounds exist for her dismissal.<\/p>\n\n\n\n
The dispute between Trump, Cook, and Powell raises questions about the Fed\u2019s independence. Economists argue central banks must remain free from political influence to serve the public interest.<\/p>\n\n\n\n
Cook said Trump attempted to fire her \u201cfor cause,\u201d though no legal basis exists. She stated: \u201cI will not resign. I will continue fulfilling my responsibilities for the US economy, as I have since 2022.\u201d<\/p>\n\n\n\n
Her lawyer, Abbe David Lowell, pledged to fight the move through all legal channels. The Federal Reserve has not commented publicly.<\/p>\n\n\n\n
Trump announced his decision Monday night on Truth Social. He accused Cook of declaring a Michigan property as her primary residence, then making the same claim for a Georgia property two weeks later.<\/p>\n\n\n\n
\u201cIt is inconceivable that you were unaware of your first commitment when making the second,\u201d Trump wrote.<\/p>\n\n\n\n
European markets opened lower on Tuesday following the announcement. US government bond yields also rose.<\/p>\n\n\n\n
The dollar briefly weakened against major currencies before recovering. Julia Lee of FTSE Russell said: \u201cThe key question is whether Trump succeeds in replacing Cook. That could reshape the Fed\u2019s balance and affect investor confidence in the US.\u201d<\/p>\n\n\n\n
Trump had already demanded Cook\u2019s resignation last week. His call followed a letter from housing finance regulator Bill Pulte, a Trump ally, accusing her of mortgage fraud. He urged Attorney General Pam Bondi to investigate. It is unclear whether an inquiry has begun.<\/p>\n\n\n\n
Cook said in a media interview that she first learned of the allegations through press reports. They relate to a mortgage application she submitted four years before joining the Federal Reserve.<\/p>\n\n\n\n
\u201cI will not step down because of claims circulating online,\u201d she said. She added she was gathering documentation to respond to legitimate questions and provide the facts.<\/p>\n\n\n\n
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