United States President Donald Trump said he was firing Federal Reserve Governor Lisa Cook, in his latest escalation against the central bank over its refusal to cut interest rates.
Trump posted the termination letter to Truth Social, citing that he has “sufficient reason” to believe she made false statements on mortgage agreements and said constitutional powers allowed him to remove her.
In rebuttal, Cook said Trump has no authority to terminate her and that she will not resign.
"President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so," Cook said in a statement.
"I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Cook also hired high-profile attorney Abbe Lowell to represent her, who said he will take whatever actions are needed to prevent Trump’s “attempted illegal action”.
“President Trump has taken to social media to once again ‘fire by tweet’ and once again his reflex to bully is flawed and his demands lack any proper process, basis or legal authority.”
The Federal Reserve has yet to comment on the President’s announcement.
Trump’s attempted firing of the Joe Biden appointee follows his increasing pressure on the Federal Reserve, particularly its chairman Jerome Powell, due to the central bank's unwillingness to lower interest rates.
Cook was also the Bank’s first African American woman to serve in the role of governor, and Trump’s decision is unprecedented in the bank’s 111-year history.
Prior to Trump’s announcement, multiple of his allies called for the firing of Cook, even going as far as to write a letter to Powell.
Experts said Cook or the Fed resisting Trump’s ousting of her could result in a standoff between the central bank and the White House.
This comes after Powell has boosted expectations of an interest rate cut in September.
