Washington DC - Federal Reserve Governor Lisa Cook is suing President Donald Trump's administration, claiming the attempt to fire her is illegal and a case of executive overreach.

"His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis," Cook's lawyer Abbe Lowell said in a statement. "We will be filing a lawsuit challenging this illegal action."

"President Trump has no authority to remove Federal Reserve Governor Lisa Cook," Lowell said.

The move comes after the Trump administration moved to fire Cook "effective immediately" on Monday, based on allegations that she had made false statements on her mortgage agreements.

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"The conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator," Trump said in a letter.

The Federal Reserve has been under severe pressure as the White House seeks to force Fed Chief Jerome Powell into cutting interest rates.

In a statement cited by CNBC, the Fed said that it sees Cook's status as unchanged as she is serving a 14-year tenure and cannot simply be removed "immediately" by the president.

"Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only 'for cause'," it insisted.

"Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people."