Legal Showdown: Trump vs. Fed Governor Cook

This Friday, a federal judge will assess whether President Donald Trump can lawfully dismiss Federal Reserve Governor Lisa Cook, who has filed a lawsuit against him. Cook, sued on grounds that Trump's claim of her prior mortgage fraud involvement is baseless and an excuse to dismiss her.

The hearing in Washington, led by U.S. District Judge Jia Cobb, could have significant ramifications for the Federal Reserve's independence. Concerns arising from the court's decision may impact global markets, as seen when the U.S. dollar dropped following Trump's removal threat.

Cook refutes the mortgage fraud claims, stating that even if true, they do not justify her removal since the alleged actions predate her confirmation. The outcome of this high-stakes legal battle may ultimately rest with the U.S. Supreme Court.

(With inputs from agencies.)