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President Donald Trump said he “removed” Federal Reserve Governor Lisa Cook from her position “effective immediately” in a letter sent to Cook, but she is refusing to resign.

Trump posted the letter on Truth Social on Saturday, five days after he first called for her to resign on the social media site. In the letter, Trump said he had the authority under the U.S. Constitution and the Federal Reserve Act of 1913 to remove governors from the Fed’s Board “for cause.” Trump said in his letter that he believes “there is sufficient reason to believe” that Cook “has made false statements on one or more mortgage agreements,” which gave him grounds to fire her.

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

The president’s letter to Cook comes in response to allegations made by Bill Pulte, a Trump appointee to an agency overseeing Fannie Mae and Freddie Mac. Pulte accused Cook of claiming two primary residences — one in Ann Arbor and another in Atlanta — in 2021 to secure more favorable mortgage terms. In an interview on Fox Business’ “Mornings with Maria,” Pulte put the allegations in stark terms.

“It’s very odd to see people try to twist back way sideways and upside down to justify mortgage fraud,” Pulte said. “This is a very serious crime. Mortgage fraud carries up to 30 years in prison. I believe the president has ample cause to fire Lisa Cook. Whether he wants to do that or not is entirely up to the president. However, we will go where mortgage fraud is. If mortgage fraud is with a Republican or Democrat, it doesn’t matter—if you commit mortgage fraud in President Trump’s America, we’re going to come after you. And Lisa Cook is no exception to that.”

On Aug. 15, Pulte filed a criminal referral to the Justice Department, accusing Cook of falsifying bank documents and property records. To date, Cook has not been charged with a crime.

Cook, who was appointed to the Federal Reserve Board in 2022 by President Joe Biden, quickly responded to Trump’s letter, saying he did not have the power to fire her. “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 in a statement sent to Fox News Digital.

Cook has hired high-profile attorney Abbe Lowell, who, among other clients, has represented Hunter Biden, New York Attorney General Letitia James, and Jared Kushner and Ivanka Trump. In a statement sent to Fox News Digital, Lowell was critical of Trump’s attempt to fire Cook. “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,” Lowell said.

FOX Business reached out to the Federal Reserve for comment, but officials did not immediately respond.

Lowell later said that he would be filing a lawsuit on behalf of Cook to formally challenge Trump’s move. “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,” Lowell said.

Democrat Lawmakers Slam Trump for Attempt

Leading Democrats quickly jumped to Cook’s defense, calling Trump’s move an unconstitutional power grab. House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md. All issued statements condemned the move.

Raskin told Axios, “What an outrage and a scandal. This is the big one constitutionally.”

Warren went further, calling the attempt “an authoritarian power grab” and saying that “Trump is desperately looking for a scapegoat to cover for his own failure to lower costs for Americans, and firing Lisa Cook is his latest move.”

Jeffries echoed the point. “There is not a shred of credible evidence that she has done anything wrong,” he said. “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. The American people are not buying your phony projection and slander of a distinguished public servant.”

Trump’s move comes as he has frequently sparred with Federal Reserve Chair Jerome Powell over interest rate policy, with the president and his allies calling on the central bank to slash rates to jumpstart the economy and make it easier for the federal government to service its debt, which has now topped $37 trillion.

Balancing Presidential Power vs. the Fed

The dispute with Cook appears to raise the question of the power of the president over the Federal Reserve. The Federal Reserve Act of 1913, which established the Federal Reserve as an independent agency, does allow the president to remove governors from the Fed’s Board “for cause.”

But legal scholars argue such a move still requires a lawful reason. As Cook and her attorney argue, Trump has yet to present such evidence, and so the validity of his “firing” is now in doubt.

Cook has said she will not resign, Lowell has said he will file a lawsuit, and top Democrats are lining up against Trump’s action. As such, the controversy now appears to be headed for a prolonged legal and political fight over the scope of presidential power and the independence of one of America’s most important financial institutions.