United News of Bangladesh

President Donald Trump has announced that he is removing Federal Reserve governor Lisa Cook from her post, marking a sharp escalation in his clash with the US central bank. In a message posted on Truth Social, Trump shared a letter addressed to Cook notifying her of her dismissal from the Fed’s board of governors with immediate effect. He argued there was “sufficient reason” to believe she had provided false information on mortgage documents and invoked constitutional powers he claimed gave him the authority to act. Cook rejected the move, insisting Trump cannot fire her, reports BBC.“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in a statement. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.” Her lawyer, Abbe David Lowell,  said, “We will take whatever actions are needed to prevent [Trump’s] attempted illegal action.” The Federal Reserve has yet to comment on the announcement, made late Monday. Why the Federal Reserve has historically remained independent of the White House Cook, the first African American woman to serve on the Fed board, is one of seven governors. Legal experts say Trump’s move—unprecedented in the Fed’s 111-year history—may face courtroom challenges over whether sufficient grounds exist for her removal. The dispute stems from allegations that Cook signed two conflicting mortgage agreements in Michigan and Georgia. Trump had already demanded her resignation last week following claims of mortgage fraud raised publicly by Trump ally Bill Pulte. Cook has denied wrongdoing, saying the issue arose from a 2019 loan application, before her appointment to the Fed. If the Fed or Cook push back, analysts warn of a potential showdown between the White House and the central bank, which has operated independently since 1951. Trump has also ramped up criticism of Fed Chair Jerome Powell, recently calling him a “numbskull” and “stubborn moron” over his resistance to steep rate cuts. Powell, however, signaled last week that a rate cut could come in September. Markets reacted swiftly to the turmoil, with the US dollar weakening in Asia on Tuesday as investors speculated Cook’s successor may favor more aggressive rate reductions.