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President Donald Trump has announced Lisa Cook is “removed” as a Federal Reserve governor, effective immediately.” However, she is not stepping down.

In a letter posted on Truth Social, Trump made his announcement one week after he first tweeted that Cook should resign as a Fed governor.

“I hereby remove you as a member of the Board of Governors of the Federal Reserve System, in your capacity as a Federal Reserve Governor, effective immediately, for cause, in my discretion, and for other good and sufficient reasons,” Trump’s letter, posted Monday on Truth Social, read.

Cook responded, saying “President Trump has no authority” to remove her, according to Fox News Digital.

“As a Federal Reserve Governor, I am appointed for a term, am protected from removal for political reasons, and cannot be fired,” Cook continued in the statement. “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, who was appointed to the Federal Reserve Board in 2022 by President Joe Biden, is being represented by high-powered lawyer Abbe Lowell, who has also represented Hunter Biden, New York Attorney General Letitia James, Jared Kushner, and Ivanka Trump, among other clients.

In response to Trump’s tweet, Abbe made it clear that his former client wouldn’t be stepping down.

“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.

Lowell would soon announce a lawsuit on Cook’s behalf to challenge Trump’s actions.

“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,” he said.

Democrats and other prominent political figures have spoken out against Trump’s announcement.

House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md. All released statements denouncing Trump’s actions.

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

Warren said Trump’s action is “an authoritarian power grab.” She added, “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 echoed her comments, saying, “To my knowledge, there is not a shred of credible evidence that she has done anything wrong. 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.”

The context of Trump’s move comes from his battle with Federal Reserve Chair Jerome Powell over rising interest rates. Trump and his allies have been urging the Fed to cut interest rates to lower borrowing costs for consumers and the federal government.

Currently, the national debt of the U.S. is more than $37 trillion, $1 trillion more than last year. If the Fed were to lower interest rates, the Treasury Department could afford to pay off a portion of the national debt, thus freeing up space in the annual budget.

While the Federal Reserve Act gives the president the authority to remove governors from the Fed’s Board “for cause,” many legal experts believe such an action by the president must also fall within legal boundaries.