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President Donald Trump has asked Federal Reserve Governor Lisa Cook to resign, claiming to have “removed” her from her post, “effective immediately,” in a letter.

Cook has refused to step down, however, triggering a standoff over Trump’s power to remove Fed governors. It also reignited a debate over politicizing the Federal Reserve, which has largely been seen as one of the last Washington institutions to maintain its independence from pressure by the White House.

Trump shared the letter on Truth Social on Friday, five days after he first called for Cook’s resignation in a post on the same platform. The letter cites both Article II of the U.S. Constitution and the Federal Reserve Act of 1913, which states that the president can remove governors of the Fed’s Board “for cause.”

The president claimed in the letter that he believed “there is sufficient reason to believe that Lisa Cook made false statements on one or more mortgage agreements.”

“I have determined that faithfully enacting the law requires your immediate removal from office,” the letter continues.

The allegations, which Trump writes he received from Bill Pulte, a Trump appointee of an agency that oversees Fannie Mae and Freddie Mac, have to do with falsely claiming primary residences. Pulte accused Cook in an interview with Fox Business of falsely claiming two primary residences in Ann Arbor and Atlanta in 2021 to take advantage of better mortgage rates.

“I have been referred to the Department of Justice for criminal prosecution, and we have a criminal referral that is ongoing now,” Pulte, who was appointed to the Federal Housing Finance Agency by Trump, said in an interview on Fox Business’ “Mornings with Maria.”

“It’s very odd to see people try to twist back way sideways and upside down to justify mortgage fraud,” Pulte added. “This is a very serious crime. Mortgage fraud carries up to 30 years in prison. I believe the president has ample cause to fire Lisa Cook. Whether he wants to do that or not is entirely up to the president. However, we will go where mortgage fraud is. If mortgage fraud is with a Republican or a Democrat, it doesn’t matter—if you commit mortgage fraud in President Trump’s America, we’re going to come after you. And Lisa Cook is no exception to that.”

Pulte submitted a criminal referral to the Justice Department on Aug. 15, accusing Cook of “committing fraud by falsifying bank documents and property records.”

Cook was nominated by President Joe Biden to the Federal Reserve Board in 2022 and quickly became one of the Fed’s six governors.

Cook immediately hit back at Trump’s letter and authority, maintaining that he did not have the authority to fire her. “President Trump purported to fire me “for cause” when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” Cook said in a statement obtained by Fox News Digital.

Cook is being represented by Abbe Lowell, an attorney who has previously represented Hunter Biden, New York Attorney General Letitia James, Jared Kushner, and Ivanka Trump. Lowell was unapologetic in his response to Trump’s letter.

“President Trump has taken to social media to once again ‘fire by tweet,’ and once again his reflex to bully is flawed and his demands lack any proper process, basis, or legal authority. We will take whatever actions are needed to prevent his attempted illegal action,” Lowell said.

FOX Business has reached out to the Federal Reserve for comment, but officials have not immediately responded.

Democrats Pounce on Trump for the Move

Democratic lawmakers were also quick to respond to Trump’s letter, calling it unconstitutional, politically motivated, and an attempt to politicize an independent agency.

House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all shared statements decrying Trump’s decision. Raskin told Axios: “What an outrage and a scandal. This is the big one constitutionally.”

Warren tweeted that the attempted removal was “an authoritarian power grab” and that “Trump is desperately looking for a scapegoat to cover for his own failure to lower costs for Americans, and firing Lisa Cook is his latest move.”

Jeffries called the attempt “nothing short of outrageous” and said there was not “a shred of credible evidence that she has done anything wrong.”

Jeffries also hit Trump himself directly: “To the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House. The American people are not buying your phony projection and slander of a distinguished public servant.”

Trump has long made clear his dissatisfaction with Federal Reserve Chair Jerome Powell, who has overseen interest rate hikes over the past year in an effort to combat rising inflation. Trump has repeatedly called on the central bank to lower rates to stimulate the economy and lower the cost of servicing the national debt, which has exceeded $37 trillion.

Time Will Tell If Trump’s Request For Cook’s Removal Will Work

Although the Federal Reserve Act does allow the president to remove governors for cause, legal experts have said such an action would require lawful justification, which has not been presented in Cook’s case.

With Cook refusing to step down, Lowell preparing a lawsuit, and Democrats speaking out in opposition to Trump, the controversy threatens to become a longer, drawn-out legal and political battle that could test the powers of the presidency when it comes to America’s most important financial institution.