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President Trump fired Federal Reserve Governor Lisa Cook, citing mortgage fraud allegations. The Fed stated it will respect any court ruling on the legality of this action. Cook plans to challenge the dismissal, arguing her removal lacks "cause" as defined by the Federal Reserve Act. The Fed emphasized the importance of long, fixed terms for governors to ensure unbiased monetary policy decisions. Trump stated he'll abide by the court's decision, but also anticipates appointing a majority of Fed governors, potentially influencing interest rate policy.

Prepared by Lauren Mitchell and reviewed by editorial team.