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Investing.com -- The Federal Reserve stated Tuesday that its governors may only be removed "for cause," serving as a safeguard for the central bank’s independence.
The statement comes after President Donald Trump moved to oust Federal Reserve Governor Lisa Cook following allegations she falsified mortgage documents.
"Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue on the Board of the Federal Reserve System," the Fed said in a statement.
The central bank added, "As always, the Federal Reserve will abide by any court decision," while also reaffirming its commitment to transparency.
Earlier Tuesday at a White House Cabinet meeting, Trump said he was prepared for a legal fight with Cook. "Oh sure, always," Trump said. "She seems to have had an infraction, and she can’t have an infraction — especially that infraction, because she’s in charge of, if you think about it, mortgages."
Trump alleged Cook claimed on two different mortgage applications that a home would be her primary residence. The president also mentioned he already has "very good people" under consideration to fill her position.
"We’ll have a majority, very shortly so that’ll be great once we have a majority, and housing is going to swing and it’s going to be great," Trump added.