Federal Reserve Governor Lisa Cook has filed a lawsuit arguing that United States President Donald Trump has no power to remove her from office, setting up a legal battle that could reset long-established norms between the president and the central bank.The lawsuit was filed on Thursday, three days after Trump published a letter saying Cook was removed from her job.In the lawsuit, Cook argues that Trump violated federal law in attempting to remove her from her position. Under the Federal Reserve Act of 1913, presidents may only remove a Federal Reserve governor “for cause”, a high bar generally understood to mean grave misconduct or dereliction of duty.As the country’s central banking system, the Federal Reserve is considered independent from political branches of government like the presidency or Congress. In theory, that allows it to set monetary policy without political influence.But concerns about whether the Fed can maintain its independence from the White House under Trump could have a ripple effect throughout the global economy. The US dollar stumbled against other major currencies after Trump first said he would remove Cook.“President Trump’s attempt to fire Dr Lisa Cook is continuing to add uncertainty and chaos to the US economy,” Sameera Fazili, the former deputy director of the National Economic Council, told Al Jazeera.Fazili …
