Former President Trump fired Federal Reserve Governor Lisa Cook, citing alleged mortgage fraud. This unprecedented move, based on a criminal referral from the Federal Housing Finance Agency Director, claims Cook falsely listed two different properties as her primary residence. Cook denies wrongdoing and the firing is expected to trigger a legal battle, potentially reaching the Supreme Court. The 1913 Federal Reserve Act limits the president's power to remove governors, requiring 'cause,' leading to questions about the legality of Trump's action.

Prepared by Lauren Mitchell and reviewed by editorial team.