Trump ramps up battle to fire Fed’s Lisa Cook. Her lawyers say there’s no basis to remove her.

President Trump has asked a committee to report on whether there are grounds to remove Federal Reserve Governor Lisa Cook from office, escalating a dispute over the independence of the central bank's leadership. Cook's lawyers say there is no basis for her removal, and she has not been charged with any crime.

The development matters to markets because Fed governors serve long, staggered terms precisely so monetary policy decisions can be made without short-term political pressure. An effort to remove a sitting governor — even one that ultimately fails — can raise questions about how insulated the Fed will remain when setting interest rates.

What to watch: whether the committee finds any formal grounds for removal, how Cook and her legal team respond, and whether other Fed officials or lawmakers weigh in publicly. Investors typically monitor such institutional questions alongside economic data, since perceived threats to central bank independence can influence how markets price future rate decisions.