Donald Trump declared he would remove Federal Reserve governor Lisa Cook from office with "immediate effect" after years of pressuring the Fed and its chair Jerome Powell. Trump cited alleged mortgage statements about primary residences as the basis for removal. Cook refused to resign and, through her lawyer Abbe Lowell, said Trump had no authority to fire her 'for cause' and vowed to fight in court. Several Democrats and legal experts called the action illegal. The Fed's founding law permits removal of governors only 'for cause.' Replacing Cook could shift votes on the seven-member board; a legal battle is likely.
However, his declaration on Monday night that he would remove the US central bank's governor Lisa Cook from office with "immediate effect" took things to a new level.
President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so. I will not resign.
The Fed's founding legislation says that its governors can only be removed 'for cause.'
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