President Donald Trump announced the immediate firing of Federal Reserve Governor Lisa Cook, a move that challenges the Fed's long-standing independence and sets up significant legal and market repercussions. Cook, appointed by President Biden and the first Black woman on the Fed board, rejected the firing, stating Trump lacked authority. The conflict centers on allegations of mortgage fraud against Cook, which she denies. Experts warn that successful removal could politicize the Fed, undermining its inflation-fighting credibility and potentially disrupting financial markets. The dispute is expected to lead to extensive legal battles, possibly reaching the Supreme Court.