New Delhi, Aug. 27 -- Federal Reserve Gov. Lisa Cook will sue President Donald Trump's administration to try to prevent him from firing her, her lawyer said Tuesday.

The announcement makes it more likely that a high-stakes legal battle will ensue that will probably end up at the Supreme Court, and could redefine the limits of the president's legal authority over the central bank. Increasingly at issue is the Fed's independence from day-to-day politics, which most economists consider a key factor in keeping long-term inflation and interest rates low.

"President Trump has no authority to remove Federal Reserve Governor Lisa Cook," said Abbe Lowell, Cook's lawyer and a longtime Washington figure who has represented prominent people from bo...