Trump's Bold Move: Firing Federal Reserve Governor Sparks Legal Controversy

In an unprecedented move that could redefine presidential power, U.S. President Donald Trump announced the dismissal of Federal Reserve Governor Lisa Cook on Monday. The action stems from accusations of impropriety in mortgage loan applications dating back to 2021, raising significant legal and political questions.

Cook, the first African-American woman on the Fed's board, was appointed by President Joe Biden. She has vehemently denied the allegations, asserting Trump's lack of authority to remove her. Cook's legal team is prepared to challenge the decision, highlighting potential constitutional issues.

This development escalates tensions over the Fed's independence and could impact its policy strategies, with potential repercussions for U.S. economic stability. As legal scholars weigh in, the stakes are high for both the administration and key economic policies.

(With inputs from agencies.)