.

Federal Reserve Governor Lisa Cook is not bowing to pressure from President Donald Trump, who declared in a letter to the official that he has “removed” her from the position “effective immediately.” The development has set off a battle over presidential power and the sanctity of the Federal Reserve, one of the most politically independent government bodies.

The president shared the letter on Truth Social on Friday morning, five days after first calling for Cook to resign on the platform. In it, Trump said the decision was made based on “cause,” citing Article II of the U.S. Constitution as well as the Federal Reserve Act of 1913, which states the president “may at any time remove any of the Governors of the Board of Governors for cause.”

In the letter, Trump said there was “sufficient reason” to believe that Cook “made false statements on one or more mortgage agreements.”

“I have determined that faithfully enacting the law requires your immediate removal from office,” Trump said.

The mortgage fraud accusations were made by Bill Pulte, a Trump appointee to an agency that regulates Fannie Mae and Freddie Mac. Pulte alleged that Cook falsely claimed two primary residences in 2021, one in Ann Arbor and another in Atlanta, to secure better mortgage rates. Pulte made the allegations during an interview on Fox Business’ “Mornings with Maria.”

“It’s very odd to see people try to twist back way sideways and upside down to justify mortgage fraud,” Pulte said. “This is a very serious crime. Mortgage fraud carries up to 30 years in prison. I believe the president has ample cause to fire Lisa Cook. Whether he wants to do that or not is entirely up to the president. However, we will go where mortgage fraud is. If mortgage fraud is with a Republican or a Democrat, it doesn’t matter—if you commit mortgage fraud in President Trump’s America, we’re going to come after you. And Lisa Cook is no exception to that.”

On Aug. 15, Pulte sent a criminal referral to the Justice Department, in which he charged that Cook “did knowingly execute and cause to be executed documents affecting property in the District of Columbia that contained false statements and omissions for the purpose of influencing the transactions and proceedings,” as well as making false statements in property records. The referral has not led to charges.

Cook, who was first nominated by then-President Joe Biden and confirmed to the Federal Reserve Board in 2022, wasted little time in pushing back against Trump’s letter. “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. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she said in a statement given to Fox News Digital.

Cook is being represented by Abbe Lowell, the attorney whose previous clients include Hunter Biden, New York Attorney General Letitia James, and Jared Kushner and Ivanka Trump. He did not mince words in his response to the letter from Trump.

“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. We will take whatever actions are needed to prevent his attempted illegal action,” Lowell said.

FOX Business reached out to the Federal Reserve for a response, but officials there did not immediately respond.

Lowell later revealed that he was filing a lawsuit on Cook’s behalf to challenge the decision in court. “President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” he said in a statement.

Democrats Slam Trump’s Attempt to Remove Cook as a Power Grab

Several Democrats quickly emerged in support of Cook, with some of them casting the attempted removal as unconstitutional and politically motivated. House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all sent out statements responding to Trump’s actions.

Raskin also told Axios, “What an outrage and a scandal. This is the big one constitutionally.”

Warren took to social media to characterize the move as “an authoritarian power grab” by Trump, who is “desperately looking for a scapegoat to cover for his own failure to lower costs for Americans, and firing Lisa Cook is his latest move.”

Jeffries, meanwhile, also defended Cook, saying she is “well-qualified” and that “not a shred of credible evidence” exists that she did anything wrong. “To the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House. The American people are not buying your phony projection and slander of a distinguished public servant,” he added.

The conflict between Trump and Cook comes as the former president is waging an ongoing battle with Federal Reserve Chair Jerome Powell over interest rate policy. The president and his allies, including House Speaker Mike Johnson, R-La., have repeatedly urged the central bank to cut rates in order to spur economic growth and lower the cost of the federal debt, which now tops $37 trillion.

The fight is a major question over just how much power the White House has over the Federal Reserve. While the Federal Reserve Act of 1913 does provide the president the power to remove governors “for cause,” the “cause” cited would have to have some basis in law—a standard Cook and her lawyers are sure to fight.