Trump Orders the Removal of Federal Reserve Governor Lisa Cook

President Donald Trump has said he will immediately remove Federal Reserve official Lisa Cook from her position, a major escalation in his battle against the US central bank.

In an announcement made on his social media platform Truth Social, Trump posted a letter addressed to Cook in which he informed her of his decision to remove her from the bank's board of governors with immediate effect.

He stated there was sufficient reason to believe she had made false statements on mortgage agreements and cited constitutional powers which he claimed allowed him to effect her removal.

Neither Cook nor the Federal Reserve has commented on the sacking, which the president announced late on Monday.

Trump has been putting increasing pressure on the Fed, especially its chair Jerome Powell, in recent weeks over what he perceives as the central bank's unwillingness to lower interest rates. His decision to fire Cook is believed to be unprecedented in the Fed's 111-year history.

This action is expected to raise legal questions, as experts suggest the White House will need to prove in court that it had adequate reasoning to dismiss her.

According to Trump's letter, Cook had signed a document stating that a property in Michigan would be her primary residence for one year, but two weeks later signed another document claiming a different property in Georgia would serve the same function.

Cook had recently refused to resign amid allegations of mortgage fraud, asserting she learned of the allegations from the media and that they concerned a loan application made four years prior to her Fed appointment.

As the situation unfolds, experts indicate that should Cook or the Fed oppose Trump's dismissal, it may lead to a standoff between the central bank and the White House. The Fed gained its independence from the US government in 1951, complicating this confrontation further.

Trump’s critiques of Powell have escalated, referring to him derogatorily and expressing frustration over the Fed's policy directions. However, Powell has recently indicated a potential interest rate cut in an upcoming meeting, contrasting Trump's pressure for immediate reductions.

The US dollar has already weakened against other major currencies as investors speculate that Cook's successor might advocate for more aggressive interest rate cuts.