THE political world has been sent into a frenzy after President Donald Trump removed a Federal Reserve official with immediate effect.

After a major escalation in Trump’s battle against the US central bank, Lisa Cook has been removed from her position, with many left wondering why.

Why has Lisa Cook been removed from the federal office by Donald Trump?

The decision to remove Cook came after Trump said there was “sufficient reason” to believe Cook had made false statements on mortgage agreements.

The wording of Cook’s removal was shared on social media by the White House on Monday evening, in a letter which was also sent to her.

Trump touted his powers under the Constitution and US law to justify the move.

It is an unprecedented decision for a president to dismiss a member of the central bank’s leadership.

It comes after Trump has mounted further pressure on the Fed due to what he believes is an unwillingness to lower interest rates.

The letter cited a criminal referral from William Pulte, the director of federal housing, to Attorney General Pam Bondi dated August 15.

Pulte stated that Cook designated a property in Michigan as her primary residence in 2021, only to declare a property in Georgia as her primary residence two weeks later.

Cook has not been charged with any wrongdoing or convicted of a crime.

Who is Lisa Cook?

Cook is one of seven members of the Fed’s board of governors, a 12-member committee responsible for setting interest rates in the US.

Cook was appointed to the role by Joe Biden, Trump’s predecessor, in 2022.

As a result, she became the first African American woman to serve in the role.

She joined Powell and the majority of the committee members in voting to keep US interest rates unchanged at the Fed’s final rate-setting meeting at the end of July.

What was her response?

The decision to remove Cook will not be without consequence, and will likely raise some legal questions.

Experts suggest that the White House may even need potentially in court – that it had sufficient reason to fire her.

Cook released a statement following her dismissal.

She said: “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’s lawyer Abbe David Lowell added: “We will take whatever actions are needed to prevent [Trump’s] attempted illegal action.”