Federal Reserve Governor Cook stated on the 26th that President Trump does not have the legal authority to fire her.
She issued a statement through her attorney, Lowell, saying: "I will not resign. President Trump claims to fire me 'for cause,' but there is no just cause under the law, nor does he have the authority to do so."
Lowell vowed that they would take all necessary action to prevent any illegal moves that Trump might attempt. According to U.S. federal law, Federal Reserve officials can only be removed "for just cause," which can be interpreted as situations involving criminal wrongdoing or neglect of duty.
He pointed out that Trump tried to dismiss his client based merely on a recommendation letter, an action lacking any factual or legal basis. They intend to file a lawsuit against this illegal act.
Last week, Trump called for Cook's resignation. On the 25th, he announced the immediate removal of Cook from the Fed Board, citing alleged loan fraud.
If Cook is successfully removed, Trump could gain four seats and thus hold a majority on the seven-member Fed Board. In his first term, Trump already appointed two of the current Board members, and recently nominated his chief economic adviser, Milan, to fill the vacancy left by Kugler's sudden resignation.