Trump ramps up battle to fire Fed’s Lisa Cook. Her lawyers say there’s no basis to remove her.

President Trump has escalated his effort to remove Federal Reserve Governor Lisa Cook, asking a committee to report on whether grounds exist for her dismissal. Cook has not been charged with any crime, and her lawyers say there is no basis for removing her from office.

The dispute matters because the Fed is designed to set interest rates independently of the White House. A president cannot typically remove a Fed governor at will; the law generally requires cause. How this plays out could shape expectations about central bank independence, which markets watch closely because it influences inflation credibility and long-term borrowing costs.

What to watch: whether the committee produces a formal finding, how Cook’s legal team responds, and whether the matter moves toward a court challenge. Any concrete step toward removal could prompt investors to reassess how insulated U.S. monetary policy is from political pressure. For now, Cook remains in her post and no charges have been filed.