Late on August 26, attorney Abe Lowell stated that Federal Reserve Governor Lisa Cook will sue President Donald Trump over her dismissal.

Attorney Abe Lowell noted in a declaration: "President Trump has no authority to remove Federal Reserve Governor Lisa Cook." A day earlier, Trump announced Cook’s dismissal on grounds of alleged mortgage fraud.

Lowell said: "His attempt to remove her based solely on a referral letter lacks both factual and legal basis. We will file a lawsuit to challenge this illegal action."

Late Monday, Trump posted a letter on Truth Social stating that he had "ample reason" to fire Cook based on allegations from a White House ally that she made false statements in one or more mortgage applications. Cook is the first African American woman to serve on the Federal Reserve Board.

This move caused long-term U.S. bond prices to fall in Tuesday trading and may create an opportunity for Trump to nominate another Fed governor. Trump has repeatedly pressured the Fed to cut interest rates.

Cook remains defiant, stating that Trump has no authority to fire her and that she will not resign. If Trump successfully forces out this official appointed by Biden in 2022, he will hold a majority of four out of seven Fed governors.

In challenging the dismissal order, Cook could immediately seek an injunction to reinstatement during the litigation process. She has not been formally indicted, but a Justice Department official hinted last week that an investigation might be launched. The allegations involve her actions before joining the Fed, which some legal experts believe could weaken Trump’s claim of "for cause" dismissal.

Aaron Klein, a senior fellow at the Brookings Institution, said: "This is a fatal blow to the Fed’s independence. Trump’s message is that the Fed must do his bidding by whatever means necessary."

Although no president has ever removed a Fed governor, the law allows it "for cause." Typically, "cause" is defined as inefficiency, neglect of duty, or misconduct during the term of office.