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Fed Governor Lisa Cook is refusing to resign despite President Donald Trump’s letter announcing he had “removed” her from her position “effective immediately.” The standoff has raised questions about Trump’s authority to remove a Federal Reserve governor and whether she is protected from such political pressure.

Trump posted the letter to Cook on Truth Social after first demanding she resign in a social media post on Friday. Trump used the U.S. Constitution as a source for his power, as well as the Federal Reserve Act of 1913, which created the Fed and allows the president to remove a governor from the Fed’s Board “for cause.”

“The Constitution of the United States and Title 12, United States Code, Section 242, as well as my determination that there is sufficient reason to believe that you have made false statements on one or more mortgage agreements, provide grounds for your removal from office and that I have the authority to remove you from the Board for cause.”

“Indeed, I have determined that faithfully enacting the law requires your immediate removal from office.”

Cook is under investigation by the Department of Justice at the request of Bill Pulte, who was appointed by Trump to a regulatory agency that oversees Fannie Mae and Freddie Mac.

In an interview on Fox Business’ “Mornings with Maria,” Pulte alleged that Cook illegally claimed she had two primary residences to get better terms on her mortgage.

“One in Ann Arbor, and one in Atlanta, and we believe this occurred in 2021,” Pulte alleged.

“It’s very odd to see people try to twist back way sideways and upside down to justify mortgage fraud,” Pulte said.

“This is a very serious crime. Mortgage fraud carries up to 30 years in prison. I believe the president has ample cause to fire Lisa Cook. Whether he wants to do that or not is entirely up to the president. However, we will go where mortgage fraud is. If mortgage fraud is with a Republican or Democrat, it doesn’t matter—if you commit mortgage fraud in President Trump’s America, we’re going to come after you. And Lisa Cook is no exception to that.”

On August 15, Pulte submitted a criminal referral to the Justice Department. Pulte’s criminal referral accuses Cook of “misrepresentation of fact in support of bank records and documents,” “potential violation of federal tax laws,” and “property record documents by a knowing and willful false statement or omission.”

On Monday, Cook, who was appointed to the Federal Reserve Board by then-President Joe Biden in 2022, issued a statement refuting Trump’s letter.

“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 said.

Cook’s lawyer, Abbe Lowell, whose previous clients have included Hunter Biden, New York Attorney General Letitia James, Jared Kushner, and Ivanka Trump, released a statement of his own in response to Trump’s letter.

“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.

FOX Business has contacted the Federal Reserve for comment.

Later Monday, Lowell issued another statement announcing they will be suing Trump on behalf of Cook. “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,” Lowell said.

House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all issued statements defending Cook. Raskin also told Axios, “What an outrage and a scandal. This is the big one constitutionally.”

Warren also released a statement, calling Trump’s attempt to remove Cook “an authoritarian power grab,” and argued, “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 also released a statement supporting Cook, writing, “She is a well-respected and nationally recognized expert in economics. To our 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.”

Cook’s pushback comes as the president continues to publicly spar with Federal Reserve Chair Jerome Powell over the central bank’s interest rate policy. Trump and his allies have accused the Fed of not doing enough to support the economy by cutting interest rates. But the Fed has decided against doing so due to ongoing inflation, resulting in the president and his allies pushing back.

The $37 trillion U.S. debt has been a particular focus of Trump’s ire, as lower interest rates would mean the government has to spend less on servicing the debt.

Trump’s challenge to Cook’s position will likely end up being a legal challenge in the coming days as Cook and her lawyers insist Trump has no power to remove her. The issue will also likely take on partisan tones as Democrats step up to Cook’s defense.