President Donald Trump said he is prepared for a legal fight after moving to oust Federal Reserve Governor Lisa Cook over allegations she falsified mortgage documents, marking the first attempt by a president to remove a sitting Fed governor and raising concerns over central bank independence.
Key facts:
- Trump cited mortgage application discrepancies as grounds for Cook’s removal.
- Cook, the first Black woman to serve on the Fed Board, said the president lacks authority to fire her and vowed not to resign.
- Her lawyer, Abbe Lowell, said she will file a lawsuit challenging the dismissal and could seek an injunction to remain in her post during litigation.
- Trump said he is considering shifting Council of Economic Advisers Chair Stephen Miran into Cook’s seat, which carries a term through 2038.
- Democrats, including Senator Elizabeth Warren, denounced the move as illegal and an attack on Fed independence.
- If successful, Trump would secure a four-person majority on the Fed’s seven-member board, potentially influencing monetary policy.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
