US President Trump fired Federal Reserve Governor Lisa Cook on the 25th on grounds of alleged mortgage fraud. Cook sued Trump on the 28th, stating that Trump had no authority to dismiss her.

CNN previously reported that this marks the first time in over 100 years that a president has dismissed a Federal Reserve governor, signaling a "significant escalation" in Trump's battle with the Fed.

According to foreign media reports, Cook's lawyer, Abe Lowell, wrote in the lawsuit: "This case challenges President Trump's unprecedented and unlawful attempt to remove Governor Cook. If allowed to proceed, this would be the first such removal in the history of the Federal Reserve Board."

The lawsuit stated that this would undermine relevant provisions of the Federal Reserve Act, which explicitly requires "cause" for the removal of a governor. The allegations regarding issues with Cook's private mortgage application submitted prior to her Senate confirmation do not constitute cause. Cook's lawsuit initiates a legal battle that could ultimately reach the Supreme Court.

The lawsuit also names Fed Chair Powell and the Federal Reserve Board as defendants, requesting the court to prevent them from carrying out Trump's dismissal order. The suit emphasizes that the claims against Powell and the Federal Reserve Board are limited to their potential legal authority to "execute President Trump's purported removal of Governor Cook."

Cook's legal team argued that the mortgage dispute that led to Trump's demand for her dismissal may have stemmed from an "unintentional paperwork error," aiming to undermine the fraud intent alleged by Trump and Federal Housing Finance Agency Director Pult.

The legal team stated that even if there was an error, it was not intentional deception, and no one suffered harm as a result. This involves the legal standard of "materiality." "Long before joining the Board, Cook may have mislabeled the property usage on her mortgage application, but there was neither intent nor material impact, which does not constitute the 'cause' required for removal," the lawyers wrote in the filing for a temporary injunction.