We are clearly on the eve of a legal battle between Donald Trump and the governor of the American Federal Reserve, the FED, Lisa Cook, dismissed yesterday, Monday, August 25, for "falsifying documents relating to mortgage loan applications."

The 61-year-old economist said she would not leave her post because the Republican leader lacks the power to fire her.

"He has no authority to" fire me

“President Trump claimed to fire me ‘for cause’ when there is none, under the law, and he has no authority to do so,” Cook said in a statement released by his lawyer.

She added: "I will not resign. I will continue to carry out my duties to support the American economy, as I have done since 2022."

According to observers of American politics, Trump's decision to fire Cook is part of his desire to exert greater control over the US central bank. Ousting Cook, appointed by Biden in 2022, would give the Republican billionaire the opportunity to secure a four-member majority on the seven-member Federal Reserve Board.

The US central bank declined to comment on the US president's decision.

No formal charges have been brought against her.

By challenging Trump's impeachment order, Lisa Cook could immediately seek an injunction for reinstatement while the legal proceedings proceed. It should be noted that no formal charges have been filed against her, although a justice official last week raised the possibility of an investigation.

It must be said that the Fed is an independent body and that no president has yet removed a governor from office. But it is doable.

By law, the White House occupant can remove a governor for "just cause." This term generally encompasses three possibilities: inefficiency, negligence in the performance of duties, and professional misconduct in the performance of duties.

Lisa Cook said last week that her mortgage was taken out before she joined the Fed.