The Trump administration accuses Cook of having cheated with loans.
The President has previously demanded that Cook resign – but she has said that she has no plans to do so, and that she does not intend to be bullied into doing so.
Historically, the practice has been that a president can only dismiss a civil servant at the Fed due to serious concerns that the person does not have the ability to continue their service.
Trump has turned up the tone against the central bank, and has, among other things, threatened Fed chief Jerome Powell with a lawsuit and called him a "stubborn idiot". The President has demanded that Powell significantly lower the interest rate. It is customary for politicians not to interfere with the actions of an independent central bank.
It is likely that the decision to fire Cook will lead to a legal dispute, according to CNBC. If Trump succeeds, he will then be able to replace her.
Lisa Cook was nominated by former President Joe Biden in 2022 and her mandate actually extends until 2038.
