The Governor of the American Federal Reserve Lisa Cook sued Trump’s administration in an effort to cancel the president’s attempt to release her, launching an unprecedented legal battle that could significantly reshape the long -standing political independence of the Fed.

No president sought to release the Governor of Fed in the 112-year history of the institution until Donald Trump published a letter about his social media platform late Monday, saying that Cook was discharged. Trump said that the reason for removal was that she had committed the mortgage fraud in 2021, before being appointed to the Committee.

The United States Supreme Court signal that the president cannot release officials because of differences in politics, but it can do so “for reasons”, usually means inconsistent behavior or neglect of duties. Most legal experts say that removal “because of the cause” requires a kind of procedure that would allow Cooko to respond to accusations, which did not happen. Cook was not charged with any crime.

The President’s decision is coming because he has repeatedly attacked chairwoman Fed Jerome Powell and other members of the Committee to set up the Fed interest, not to reduce the short -term interest rate they control faster. Currently, it is 4.3 percent after the FED policy creators reduced it by a full percentage point late last year. Powell signalized last week that the central bank tilted the reduction of the rate at the next meeting from 16 to 17 September.

These attacks opened the White House to criticize that his release Cook was just an excuse to open a second place on the Trump Loyalist Committee for the alleged mortgage fraud. Trump said he would only name people in the Fed who would support the lower rates.