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Washington. President Donald Trump announced on Monday that he had dismissed the Federal Reserve Board Governor Lisa Cook. It is considered an unprecedented step of attacks on its freedom on refusal to cut the interest rates of the US central bank. Trump, in a post dismissal letter on Truth Social, cited the allegations of Bill Pulte, director of the Federal Housing Finance Agency, that Lisa Cook made false statements in home loan applications.

This development has been discussed in detail in CNBC news. It has been reported that this letter came four days after the justice department’s claim to investigate Cook due to the claim of Pulte. Cook said in a statement on Monday, “President Trump has claimed me to dismiss me ‘reasons’, while there is no reason under the law and he has no right to do so.” Cook, the first black woman to serve as a Federal Reserve Governor, said, “I will not resign. I have been performing my duties to help the American economy since 2022.”

Sanad Rahe Kuk was appointed by former President Joe Biden. He has appointed high profile lawyer Abbey Lowell to represent himself in court. Advocate Lowell said in a statement, “President Trump has once again resorted to social media to ‘attack’ and once again his reaction to his threat is faulty and his demands lack any appropriate process, base or legal right.” Lowell said, “We will take every necessary steps to stop the illegal action of the President.” A Federal Reserve spokesperson did not immediately comment on Trump’s letter. Experts say that the Supreme Court can eventually pronounce a verdict on whether their dismissal is valid or not. If this decision remains intact, Trump can form the fed board afresh.

“The illegal attempt to dismiss Lisa Cook is the latest example of a desperate President finding a sacrifice to hide its failure in reducing costs for Americans,” Senator Elizabeth Warren (Democratic-Mesachusetts) said in a statement on Monday night. “This is a clear violation of the Federal Reserve Act and should be overturned in court,” said Warren, senior member of the Senate Banking, Housing and Urban Affairs Committee.

Edward Mills, managing director of Financial Advisor firm Raymond James, said Trump’s move to dismiss Cook “is an unprecedented moment for the central bank’s freedom, indicating the growing campaign of the White House to directly impact monetary policy decisions.” Mills said, “The market can see this attack negatively on the freedom of the market, which can increase uncertainty about future policy directions.”