U.S. President Trump fired Federal Reserve Governor Lisa Cook on the 25th on suspicion of housing mortgage fraud. On the 28th, Cook filed a lawsuit against Trump in the U.S. District Court for the District of Colombia, claiming that Trump had no right to fire her.

Does the President of the United States have the power to remove the governor of the Federal Reserve? Will the independence of the Federal Reserve as the central bank of the United States be impacted by this?

The decision to remove Cook from office cannot be implemented and realized by Trump with a letter or a word.

Last week, Bill Pult, the director of the Federal Housing Finance Agency, indicated that Cook had subsequently declared two properties as his ¡°main residence¡± in order to obtain more favourable interest rates, and referred the case to the Justice Department, which the Department of Justice said would investigate.

U.S. Cable TV News Network commented:The accusations at this stage alone are not enough to dismiss Cook.

CNN guest:If someone is to be accused of housing mortgage fraud, then the Department of Justice should prosecute the person. Usually, the news of the investigation shouldn't be made public, but they have made it public. At the moment, the Department of Justice has not filed a case and has not officially prosecuted Cook, so the reasons for his resignation are problematic. But Trump is now based on that.

Legal scholars argue that,The Trump administration must prove in court that Cook did commit mortgage fraud and that his behavior was grossly inappropriate.The Associated Press pointed out that,Trump's firing of Cook may trigger a protracted legal battle, which is likely to go to the Supreme Court.

At the same time, the so-called reasons for dismissal proposed at present are not directly related to Cook's own ability to hold office.

The reason for the dismissal is not directly related to Cook¡¯s capacity to serve.

Special commentator, Su Xiaohui:A key criterion for judging whether a Fed governor can serve is whether he is dereliction of duty or unable to perform his duties. Now, although Trump has challenged Cook in terms of criminal responsibility, even if the reason given by the president is established, there is no so-called strong correlation with Cook's own ability, that is, it does not affect Cook's own ability to serve as a Federal Reserve governor.

U.S. removal of the precedent would impact the independence of the Federal Reserve.

Special commentator, Su Xiaohui:Previously, US President Trump has repeatedly pressured the Federal Reserve to cut interest rates and cooperate with himself in the tariff war. Now Trump is trying to remove the Fed governor, which will of course have a further impact on the independence of the Fed. When it comes to the design of the Federal Reserve, the emphasis on independence is to prevent individual interest groups in the United States from arbitrarily influencing the decision-making of the Federal Reserve, and to prevent people including the president from arbitrarily placing people to manipulate it, so as to maintain the relative independence and stability of the monetary policy of the United States. But the president of the United States sees an important opportunity to exert influence on the Federal Reserve. In August this year, one director announced his resignation, and if Trump successfully dismisses Cook this time, it means that the president can nominate two directors to further exert influence. Doing so will also set a precedent, that is, the president of the United States can influence the Federal Reserve at a lower cost, including appointment and dismissal of personnel to achieve his own goals.

The impact on the Federal Reserve will exacerbate the challenges facing the US economy

Special commentator, Su Xiaohui:At this moment, we see that the independence of the Federal Reserve, which is struggling to balance employment and price stability, is affected, which means that there will be more uncertainties in the future of the US economy.