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US President Trump has announced the dismissal of Federal Reserve Governor Lisa Cook, but Cook has refused to step down and threatened legal action. Trump has accused Cook of fraud, while Cook maintains that there is no legal basis for her dismissal.
A senior official has launched a rebellion against US President Donald Trump, even threatening to take him to court.
The controversy stems from Trump's announcement of the dismissal of Federal Reserve Governor Lisa Cook. However, Cook has declared she will not resign and intends to file a lawsuit against the President's decision.
Cook stated that there is no legal basis for her dismissal, asserting that Trump lacks the authority to remove her without cause.
Trump, in a late-night social media post on Monday, announced his demand for Cook's immediate removal. He cited misconduct and neglect of duty as the reasons for her dismissal.
Trump wrote that the US administration had accused Cook of fraud in 2021, prior to joining the Fed. He alleged that she attempted to obtain mortgage loans by falsely claiming a Michigan home and an Atlanta condominium as her primary residences.
Cook's lawyer, Abbe Lowell, stated on Tuesday that there is no factual or legal basis for the dismissal and that the matter will now be pursued in court. Meanwhile, Cook, through a spokesperson, affirmed that she has been diligently fulfilling her duties in support of the US economy since 2022.
She had previously declined to comment on these allegations, which relate to loans taken before joining the Fed in 2022, approximately three years ago. However, she stated last week that she could not be forced to resign from the seven-member Fed board, on which she is the first Black woman to serve.
Currently, a Federal Reserve spokesperson has not offered an immediate comment. If successful, this dismissal could provide Trump with a majority on the Fed board, potentially aiding his goal of lowering interest rates.
The Federal Reserve is the central bank of the United States, responsible for controlling the nation's monetary policy. Its primary objective is to maintain a stable and secure economy, encompassing the regulation of interest rates and oversight of financial institutions.
The Federal Reserve's policies significantly impact not only the US economy but also global financial markets. It is important to note that the White House does not directly control the Federal Reserve, as it operates as an independent agency.