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President Donald Trump declared in a letter to Federal Reserve Governor Lisa Cook on Thursday night that he had “removed” her “effective immediately,” but she is refusing to budge and resigned.

Cook has not backed down, and Trump’s action has reignited a debate over presidential power and the autonomy of the nation’s central bank, which is supposed to be free from political influence.

On Truth Social, the president posted a letter addressed to Cook, a Black female economist. Trump first demanded Cook’s resignation on the platform five days ago.

He wrote that as president, he can dismiss any governor on the Fed’s Board of Governors “for cause” based on the U.S. Constitution and the Federal Reserve Act of 1913.

“I have determined that faithfully enacting the law requires your immediate removal from office,” he added.

The charges leveled against Cook by Bill Pulte, a Trump nominee for an agency that supervises Fannie Mae and Freddie Mac, were stated as the reason for her firing.

The president claimed there was “sufficient reason to believe” that Cook “made false statements on one or more mortgage agreements.”

Pulte accused the Fed governor of claiming two primary residences, one in Ann Arbor and one in Atlanta, to qualify for lower mortgage rates during mortgage purchases in 2021.

The House Minority Leader, Rep. Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all called the decision an overreach and a politicization of the Fed.

Pulte made the accusations on Fox Business’ “Mornings with Maria.”

“This was pretty black and white,” Pulte said of the allegations. “It’s very odd to see people try to twist back way sideways and upside down to justify mortgage fraud.”

Pulte later filed a criminal complaint with the Justice Department, saying that Cook had falsified bank documents and property records.

Cook, a Black woman, was appointed to the Federal Reserve Board in 2022 by President Joe Biden. She wrote in a statement to Fox News Digital that the former president was not able to remove her because he did not provide a cause, and that she would not resign.

“I am well aware of the important role the Fed plays in our economy. President Trump purported to fire me “for cause” when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” Cook said.

Cook’s attorney is Abbe Lowell, who has represented Hunter Biden, New York Attorney General Letitia James, as well as Jared Kushner and Ivanka Trump. Speaking out against Trump’s removal letter was not difficult for Abbe.

“President Trump has taken to social media to once again ‘fire by tweet,’ and once again his reflex to bully is flawed and his demands lack any proper process, basis, or legal authority. We will take whatever actions are needed to prevent his attempted illegal action,” Abbe said.

On Friday, Abbe stated that he will file a lawsuit on Cook’s behalf to put an end to Trump’s removal letter. “President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” he said.

High-Profile Democrats Defend Fed Governor Lisa Cook

House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all reacted swiftly after Trump’s choice, with some issuing statements condemning the move and others accusing the former president of trying to politicize the Federal Reserve.

“This is a bizarre and lawless move. To the best of my knowledge, there’s not a shred of credible evidence that she has done anything wrong,” Jeffries wrote in a tweet.

To the best of my knowledge, there is no shred of credible evidence that she has done anything wrong. Lisa Cook is a respected scholar, economist, and public servant with a history of representing her country at the highest level. https://t.co/Gwqm8vn2rZ

Jeffries added, “To the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House.”

“We will not stand by as Donald Trump continues to politicize the Federal Reserve. This is a threat to our financial stability,” Warren wrote in a separate tweet.

A lot of people don’t understand what the Federal Reserve is and why it matters. I do, and it’s a bedrock of our economy and the foundation of our financial stability. The Fed should never be political, and Trump should never fire Fed Chair Powell or any of his fellow governors. https://t.co/b05esxpHQQ Raskin described the effort as “an assault on the independence of the Federal Reserve” in a statement he provided Axios. “What an outrage and a scandal. This is the big one constitutionally.”

He also went on Twitter to say, “Trump is a thin-skinned tyrant who is incredibly angry at Fed Chair Powell because Powell has not lowered interest rates to please Donald Trump.”

Trump was angry at the Fed’s refusal to cut interest rates, which would also assist him in lowering the cost of servicing the national debt, which now exceeds $37 trillion.