When a president says a central banker is fired, but she's not.

I'm David Bruncatcha. President Trump says he is immediately firing Federal Reserve Governor Lisa

Cook for alleged mortgage fraud. Cook says she's not leaving in evidence for the allegation,

if any, has not been shared publicly. And unlike, for

instance, the head of the President's Council of Economic Advisers, Cook does not serve at the

pleasure of the President. And experts say she can only be removed if cause is established.

Marketplace Washington correspondent, Nancy Marshall Ginsburg, joins us now. What's the claim regarding Cook?

Yeah, Trump is referring to allegations that Cook claimed two houses as her primary residence on mortgage applications.

Mortgage rates on second homes can be higher than rates for your primary residence. But the Banking Act of 1935 says Fed governors can only be fired for cause, and it's not

clear that even if Cook did this, it would be cause enough to fire her. And Cook says she's not

stepping down. What's the next step? Maybe court? It certainly looks that way, David. In a statement

through her lawyer, Cook says no cause

exists for her firing. Trump does not have the authority to remove her, and she'll continue to

carry out her duties. But let's say Cook is forced out. The president can then fill two vacancies

on the Fed Board of Governors, which would mean a majority of Trump appointees on that

powerful board. They might be independent-minded, but they might not be. And markets would be

afraid the Fed was just doing what the president wants, not what's good for the economy. If investors

lose confidence in the Fed, they'll demand higher interest rates to hold U.S. bonds.

And I spoke about this with Alex Hakez.

He's with Groundwork Collaborative, a progressive economic think tank.

All of these moves that Trump is making that is shaking confidence in the U.S.

is only going to drive up interest rates and certainly long-term rates for

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