US President Donald Trump defended his decision to dismiss Federal Reserve Governor Lisa Cook, citing alleged mortgage fraud as the reason. “We need people that are 100 percent above board. And it doesn’t seem like she was,” Trump told reporters at the White House on Tuesday.

Cook, who was nominated by former President Joe Biden in 2022, rejected Trump’s claims, saying the president has “no authority” to remove her. “I will not resign,” she asserted.

Her attorney, Abbe Lowell, announced plans to sue, calling the move “illegal” and lacking factual basis. The Federal Reserve Act limits a president’s power to fire governors, only allowing dismissals “for cause,” though the term remains undefined.

If successful, Trump could reshape the Fed’s board with a new appointee, potentially influencing U.S. monetary policy for years.