Fed Governor Lisa Cook Plans Lawsuit Against Trump Over Removal Attempt

President Donald Trump has attempted to fire Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, sparking a constitutional crisis over the Fed's independence. Trump accused Cook of deceitful and potentially criminal conduct and claimed he had the authority to remove her, but Cook has rejected the dismissal and vowed to sue, with her lawyer calling the firing illegal and without factual basis. The White House, including Trump's top economic adviser Kevin Hassett, has urged Cook to take leave while the courts decide her status, but she insists on continuing her duties. This confrontation is part of Trump's broader effort to assert control over the Federal Reserve, including his push for lower interest rates and his nomination of allies to the Fed's board. Market reactions have been cautious, with the dollar weakening and gold prices rising amid uncertainty about the Fed's autonomy. Independent economists warn that if Trump succeeds, it could fundamentally alter U.S. monetary policy and undermine the Fed's longstanding independence.