President Donald Trump removed Federal Reserve governor Lisa Cook effective immediately, citing an allegation that she obtained a mortgage on a second home while misidentifying it as her primary residence. The claims remain unconfirmed; Cook said she will gather accurate information to answer legitimate questions and rejected being bullied into resigning. Trump posted a letter claiming sufficient cause and Cook's exit would allow a presidential replacement, potentially increasing influence over Fed policy amid demands for lower interest rates. Cook was appointed in May 2022 as the first Black woman on the Fed board, a respected economist with prior academic and advisory roles; her term ran through 2038. The US Supreme Court has suggested the president may lack authority to fire Fed governors without cause.
Donald Trump has moved to fire the Federal Reserve governor Lisa Cook over allegations she committed mortgage fraud, the latest escalation in the US president's attack on the central bank's independence. Trump wrote to Cook on Monday, telling her that he was removing her from her position effective immediately based on the allegation from one of his allies that she had obtained a mortgage on a second home she incorrectly described as her primary residence.
The claims have not been confirmed and last week Cook said she had no intention of being bullied into stepping down. She said: I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts. Trump posted the full text of the letter on social media on Monday night.
Cook is not a politician, but is among a string of senior Fed policymakers who have defied Trump's persistent calls for rate cuts. Appointed by Joe Biden in May 2022, she became the first Black woman to sit on the central bank's board. Her term on the Fed's board was not due to end until 2038. She is a respected economist, with stints at Harvard University and Stanford University, who served on the council of economic advisers under Barack Obama.
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