The Federal Reserve said on Tuesday that it will respect the court’s decision in the upcoming lawsuit filed by Fed governor Lisa Cook, who is challenging her firing by US President Donald Trump.

“Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System,” a Fed spokesperson said in a statement. “The Federal Reserve will abide by any court decision,” the spokesperson added.

Trump fires Cook, lawyers dispute his authority

On Monday, Trump posted a letter on his social media handle saying he was removing Lisa Cook from her role.

“You are hereby removed from your position on the Board of Governors of the Federal Reserve, effectively immediately,” the letter said.

Soon after, Cook’s attorney, Abbe David Lowell, pushed back, saying Trump had no legal authority to remove her.

“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” he said in a statement.

Growing tensions between Trump and the Fed

Cook’s firing adds to the ongoing pressure campaign from the White House on the Federal Reserve. For months, Trump has been urging the Fed to cut interest rates, but the committee has resisted.

The US economy has seen prices rise in recent months, even as unemployment remains low. The Fed’s role is to balance inflation and employment by adjusting short-term interest rates. Raising rates slows down profits and hiring, while lowering rates boosts business investment and jobs.

Trump has tried to influence Fed Chair Jerome Powell in unorthodox ways – from mocking him publicly to accusing him of fraud. During a rare joint appearance, Trump blindsided Powell with a new cost estimate for a Fed building renovation, but Powell brushed it off.

Accusations of mortgage fraud against Cook

Federal Housing Finance Agency (FHFA) Director Bill Pulte also accused Lisa Cook of mortgage fraud, saying documents showed she listed two different houses as her primary residence.

Pulte, a Trump ally, has used his position at the FHFA, which oversees Fannie Mae and Freddie Mac, to attack other political opponents of the president as well. He has previously accused Rep. Adam Schiff, a key figure in the Jan. 6 hearings, and New York Attorney General Letitia James, who has filed multiple lawsuits against Trump, of similar mortgage fraud allegations.