WASHINGTON – Lisa Cook, the Federal Reserve governor President Donald Trump said he fired, has filed a federal lawsuit arguing the president has no power to remove her from office.

The unprecedented legal battle threatens to eventually reach the Supreme Court, as the dispute seeks to resolve how much authority the president has over the so-called independent board.

When Congress created the Fed in 1913, lawmakers said officials could only be removed for “cause,” which means a good reason. The Supreme Court has said this gives Fed officials unique protection from removal.

"This case challenges President Trump’s unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would the first of its kind in the Board’s history," Cook's lawsuit said Aug. 28. "The President’s actions violate Governor Cook’s Fifth Amendment due process rights and her statutory right to notice and a hearing under the" Federal Reserve Act.

U.S. District Judge Jia Cobb scheduled a 10 a.m. hearing on Aug. 29 to determine whether to block Trump's action temporarily while the case is litigated.

Trump contends allegations of Cook’s “potentially criminal” action filling out mortgage documents was enough for him to fire her. Trump also argues he has the power to fire anyone in the executive branch.

William Pulte, a Trump appointee who is the director of the Federal Housing Finance Agency, raised allegations that Cook filled out mortgage documents that claimed homes in Michigan and Georgia as her "primary residence." Pulte referred the matter to Attorney General Pamela Bondi for investigation.

“He has the cause that he needs to fire this individual," White House press secretary Karoline Leavitt told reporters Aug. 28. "We’ll continue to fight this battle."

But Cook has not been charged criminally. Legal experts said it's not clear whether she can be removed for "cause" if she hasn't had a chance to respond to allegations against her.

Removing Cook could hurt confidence in the independence of the Fed, which sets interest rates based on economic goals. The dispute arose amid repeated Trump complaints the Fed should lower interest rates to spur housing and economic growth. The U.S. dollar stumbled against other major currencies after Trump said he would remove Cook.

Vice President JD Vance defended Trump's decision in an exclusive interview Aug. 27 with USA TODAY.

The Fed issued a statement Aug. 26 saying the agency would abide by any court decision.

This article originally appeared on USA TODAY: Lisa Cook files federal lawsuit to fight Trump firing her from Fed

Reporting by Bart Jansen, USA TODAY / USA TODAY

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