Will sue president, says Federal governor Lisa Cook as Trump sacks her

Financial markets worldwide have been rattled by President Donald Trump's announcement that he's firing Federal Reserve governor Lisa Cook, an unprecedented move and sharp escalation in his effort to exert greater control over what has long been considered an institution independent from politics.

But Cook said she's not leaving, and her lawyer said Tuesday that she'll sue to keep her job. "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 an emailed statement. "I will not resign."

Trump said in a letter posted on his Truth Social platform that he is removing Cook effective immediately because of allegations by one of his supporters that she committed mortgage fraud. Market reaction was swiftly negative - economists have long preferred independent central banks because they can more easily take unpopular steps to fight inflation and ensure the economic stability that is key to business confidence.

Cook's lawyer, Abbe Lowell, said Trump "has no authority to remove Federal Reserve Governor Lisa Cook."

Cook, appointed by President Biden in 2022, is the first African-American woman to serve on the Federal Reserve's governing body.

Trump, in a letter announcing his move to fire her on Monday, said he had "sufficient cause to remove you from your position" because in 2021 Cook had indicated on documents for separate mortgage loans on properties in Michigan and Georgia that both were a primary residence where she intended to live. Cook has denied wrongdoing and has not been charged.