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This unprecedented move represents a major escalation in Trump’s battle with the Fed, which he accused of waiting far too long to cut interest rates.

Cook has recently come under criticism from Trump and his administration members over allegations of mortgage fraud. The Justice Department said it plans to investigate these claims, first raised by Federal Housing Finance Director Bill Pulte.

No official charges have been filed against Cook.

In a statement shared with CNN Monday night by her attorneys, Cook said: “President Trump claims to have fired me ‘for cause,’ although there is no legal basis for this and he lacks the authority to do so. I will not resign. As I have since 2022, I will continue to fulfill my duties to help the American economy.”

The Fed declined to comment on the news.

It remains unclear whether Trump has the legal authority to dismiss Cook over these allegations. The law states that the president may remove a Fed Board member only “for cause,” but what constitutes such cause is not clearly defined.

In a letter to Cook, Trump wrote: “I have determined there is sufficient cause to remove you.”

The Board consists of seven members appointed by the U.S. president and confirmed by the Senate. These members guide the Federal Reserve’s policy decisions.

Board appointments are staggered; one member’s term expires every two years. This system is intended to ensure the Fed’s independence as a central bank and to prevent a president from abusing power by appointing only those who support his policies.

According to the original Federal Reserve Act, the seven members must represent the nation’s financial, agricultural, industrial, and commercial interests. Geographic diversity is also a factor, as each member must be chosen from a different Federal Reserve district. Recently, Congress required that at least one member have community banking experience.