Federal Reserve Governor Lisa Cook has warned the administration of former United States President Donald Trump that it lacks legal grounds to remove her from her leadership role at the central bank. This development comes as Trump intensifies his efforts to dismiss Cook, a move widely seen as a challenge to the Federal Reserve's independence.

Under US law, Federal Reserve governors can only be removed "for cause" and not for political reasons. Cook's legal team stated, "For the second time in a year, we have explained why there is no legal basis for President Trump to remove Governor Cook for cause."

On August 5, the White House sent a message indicating that Trump, a Republican, was considering firing Cook "due to there being sufficient reason to believe that you made false statements on one or more mortgage agreements."

Federal Reserve Chair Jerome Powell condemned the investigation into Cook as an intimidation tactic, emphasizing the importance of the Fed's ability to set interest rates based on evidence and economic conditions rather than political pressure or intimidation.

Despite a Supreme Court ruling that generally supports Trump’s authority to fire Federal Reserve officials, Cook has been treated as an exception, and the legal dispute continues.

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