President Trump announced he is removing Federal Reserve Governor Lisa Cook effective immediately, citing allegations that she obtained mortgage funds improperly. He posted the removal letter on Truth Social and claimed Cook signed two different addresses as primary residences in separate mortgage contracts weeks apart. Trump described the actions as deceitful and potentially criminal, saying they eroded public trust in her oversight of the Fed. Cook said she will not resign, arguing the president lacks statutory authority to remove a sitting governor "for cause." The dispute originated from allegations by Bill Pulte and could trigger a legal battle over presidential authority and Fed independence ahead of a Sept 16-17 policy meeting.
US President Donald Trump on Monday said he is firing US Federal Reserve Governor Lisa, marking an unprecedented attempt to extend presdiential influence over the independent monetary body. Trump announced his intentions in a letter posted on his social media platform, Truth Social. He announced that he was removing Cook from her position, effective immediately, due to allegations that she obtained mortgage funds improperly.
"I have determined that there is sufficient cause to remove you from your position," he said in the letter. Trump went on to describe that Cook had signed two different addresses as primary residences in two different contracts, weeks apart. He called it a "deceitful and potentially criminal conduct in a financial matter," saying it eroded the American people's trust in her to oversee the Federal Reserve.
On Monday night, Cook said that she would not step down from her position. "President Trump purported to fire me 'for cause' when no excuse exists under law, and he has no authority to do so," she said in an emailed statement through her attorney, Abbe Lowell. "I will not resign," she added.
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