Trump orders the withdrawal of the governor of the Federal Reserve Lisa Cook

President Donald Trump said he would immediately withdraw the head of the Lisa Cook Federal Reserve from his post, a major escalation in his battle against the American Central Bank.

In an announcement made on his social media platform Truth Social, Trump published a letter addressed to Cook in which he informed him of his decision to withdraw it from the Council of Bank Governors with immediate effect.

He said that there was “sufficient reason” to believe that she had made false declarations on mortgage agreements and cited the constitutional powers which, according to him, allowed him to withdraw it.

In response, Cook said Trump did not have the power to dismiss her and that she will not resign.

“President Trump claimed to dismiss me” in question “when no cause exists under the law, and he does not have the power to do so,” said Cook in a statement.

“I will not resign. I will continue to exercise my tasks to help the American economy as I have been doing since 2022,” she added.

The federal reserve has not yet commented on the president’s announcement, which he made late on Monday.

Trump has expressed growing pressure on the Fed – in particular its president Jerome Powell – in recent weeks on what he considers the central bank’s reluctance to reduce interest rates. He has repeatedly launched the possibility of dismissing Powell.

His decision to turn Cook, who is one of the seven members of the Fed Governors’ Council and the first African-American woman to play in this role, would be unprecedented in the 111 years of history of the Central Bank.

He is also likely to raise legal issues, the experts suggesting that the White House will have to demonstrate – potentially in court – that he had enough reasons to dismiss her.

According to Trump’s letter, Cook has signed a document, attending that a property in Michigan is his main residence for next year.

“Two weeks later, you signed another document for a property in Georgia declaring that it would be your main residence for next year,” said the president.

“It is inconceivable that you were not aware of your first commitment when you make the second,” he wrote.

The president called for her resignation last week for the allegation of mortgage fraud, which was made for the first time in a public letter from the housing finance regulator, Bill Pulte, an ally of Trump, to the Attorney General Pam Bondi.

The housing finance regulator described the letter as a “criminal reference” and urged the Ministry of Justice to investigate. It is not clear if an investigation has been opened.

Cook told the BBC in a statement last week that it had learned the allegations of the media, and the case came from a mortgage loan request that it had made four years ago before joining the central bank.

“I have no intention of being intimidated to leave my position because of certain questions raised in a tweet,” she said.

“I intend to respond seriously about my financial history as a member of the Federal Reserve and I therefore collect precise information to answer all legitimate questions and provide the facts.”

If Cook or the Fed resist Trump’s decision to avoid it, the experts suggest that this could trigger a dead end between the central bank and the White House. The Fed obtained the independence of the United States government in 1951.

Trump expressed growing animosity at Powell, calling it “numbness” and “obstinate moron” because he did not support the president’s calls to rapid and important reductions in borrowing rates.

But last week, Powell stimulated expectations that there will be a drop in interest rates in September. Addressing the central bankers gathered in Jackson Hole, Wyoming, he also argued that the inflationary impact of Trump prices could be temporary.

The US dollar has weakened in the main global currencies in Asia on Tuesday while investors are betting that the replacement of Cook is likely to put pressure for more interest rate drops.