Trump orders removal of Federal Reserve governor

US President Donald Trump has said he will immediately remove Federal Reserve official Lisa Cook from her position, in a major escalation in his battle against the US central bank.

He said there was "sufficient reason" to believe Cook had made false statements on mortgage agreements, and cited constitutional powers which he said allowed him to remove her.

In response, Cook said Trump had no authority to fire her and she would not resign.

It is an unprecedented move for the president to dismiss a member of the central bank's leadership, and comes as Trump has put increasing pressure on the Fed - especially its chair Jerome Powell - over what he sees as an unwillingness to lower interest rates.

Cook is one of seven members of the Fed's board of governors, and in this position sits on the 12-member committee which is responsible for setting interest rates in the US.

The Fed's decision affects the rate at which Americans can borrow money as well as the savings rates on their bank accounts. US interest rates are also closely watched by central banks who set monetary policy in other countries.