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President Donald Trump said he has fired Federal Reserve Governor Lisa Cook and that her removal from the Fed is “effective immediately.”

But Cook, who is refusing to step down, is now engaged in a standoff with the former president that is raising constitutional questions about the president’s powers.

Trump said he was removing Cook from her post in a letter that he posted on Truth Social on Wednesday. The letter comes five days after Trump first called on Cook to resign from the Fed on Truth Social. In the letter, Trump cited the U.S. Constitution and the Federal Reserve Act of 1913, which permits the president to remove governors from the Federal Reserve’s Board “for cause.”

“We find that there is sufficient reason to believe that you have made false statements on one or more mortgage agreements,” Trump wrote.

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

The allegations against Cook were raised by Bill Pulte, who was appointed by Trump to an agency that oversees Fannie Mae and Freddie Mac. Pulte alleged that Cook claimed two primary residences in 2021 — one in Ann Arbor and another in Atlanta — to obtain better mortgage terms. Pulte, in an interview on Fox Business’ “Mornings with Maria” program, put the allegations in plain terms.

“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 a 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, accusing Cook of falsifying bank documents and property records. He did not immediately get formal charges.

Cook, who Biden appointed to the Federal Reserve Board in 2022, quickly pushed back on Trump’s claim that he had the authority to fire her. “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 in a statement provided to Fox News Digital.

Cook is being represented by Abbe Lowell, a high-powered lawyer whose previous clients have included Hunter Biden, New York Attorney General Letitia James, and Jared Kushner and Ivanka Trump. Lowell did not pull any punches in his statement to Trump.

“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 reached out to the Federal Reserve for comment, but officials did not immediately respond.

Later on Wednesday, Lowell indicated that he would file a lawsuit on Cook’s behalf. “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.

Top Democrats Speak Out in Support of Cook

High-profile Democrats were also quick to condemn Trump’s attempt to fire Cook as unconstitutional and politically motivated. House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all spoke out about the president’s action.