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Federal Reserve Governor Lisa Cook is not resigning despite President Donald Trump’s letter claiming she was “removed” effective immediately.” The curious episode has raised constitutional questions about the president’s power and that of the Fed itself.

Trump posted the letter to Cook on Truth Social on Friday, after first demanding her resignation on the platform five days prior. In the letter, Trump cited both the U.S. Constitution and the Federal Reserve Act of 1913, which permits presidents to “remove” governors from the Fed’s Board “for cause.”

For Trump, “cause” was that there was “sufficient reason to believe you have made false statements on one or more mortgage agreements.”

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

The complaint against Cook was leveled by Bill Pulte, a Trump appointee at an agency that regulates Fannie Mae and Freddie Mac. Pulte accused Cook of falsely designating two primary residences, one in Ann Arbor and one in Atlanta, in 2021, for favorable mortgage arrangements. Pulte elaborated on the charge during an interview on Fox Business’ “Mornings with Maria.”

“This is very, very odd to see individuals try to twist back way sideways and upside down to justify mortgage fraud. This is a very serious crime. Mortgage fraud carries a 30-year prison sentence. I believe the president has more than enough cause to fire Lisa Cook. It’s up to the president whether he wants to do that or not. But we will go where mortgage fraud is. If mortgage fraud is with a Republican or, Democrat, it doesn’t matter. If you commit mortgage fraud in President Trump’s America, we’re coming after you. And Lisa Cook is no exception to that,” Pulte said.

Pulte filed a criminal referral to the Justice Department on August 15, alleging that Cook provided false information to banks and falsified property records. To date, the referral has not led to formal charges.

Cook, who was appointed to the Federal Reserve Board in 2022 by President Joe Biden, quickly responded to Trump’s claim that he could 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 sent to Fox News Digital.

Cook is being represented by Abbe Lowell, a lawyer who has worked with Hunter Biden, New York Attorney General Letitia James, and Jared Kushner and Ivanka Trump. He was unambiguous 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 reached out to the Federal Reserve, but officials did not immediately respond.

Lowell later said he would be filing a lawsuit on Cook’s behalf to officially challenge the former president’s attempted removal. “President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” Lowell said.

Democrats blast Trump’s move.

Democrats have leapt to Cook’s defense, with top figures in both the House and Senate coming out with statements opposing Trump. House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., were among those issuing statements against the president.

Raskin told Axios, “What an outrage and a scandal. This is the big one constitutionally.”

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

Jeffries also described Trump’s letter as a “baseless attack.” “There is not a shred of credible evidence that she has done anything wrong,” he said. He also took a shot at Trump himself: “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 been feuding with Federal Reserve Chair Jerome Powell over interest rates. The president and his supporters have been urging the Fed to slash rates to stimulate the economy and reduce interest payments on the national debt, which has soared past $37 trillion.