President Trump said he had fired Federal Reserve governor Lisa Cook on Monday, though the top Fed official later said she won't leave the post.

Why it matters: The firing is a legally dubious move that further threatens the central bank's political independence, one that might set up a legal battle in the months ahead.

What they're saying: Trump cited Article II of the Constitution and the Federal Reserve Act of 1913 to tell Cook she was "removed" from her position, "effective immediately," according to a letter the White House rapid response team shared on X.

The other side: "President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so," Cook said in a statement via Lowell & Associates, the law firm representing the Fed official

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