Trump Dismisses Federal Reserve Governor Lisa Cook

On Monday, President Donald Trump removed Federal Reserve Governor Lisa Cook from her position.

Earlier this week, he called for her resignation on Truth Social, following comments from Bill Prute, the Director of the Federal Housing Finance Agency, who referred her to the Department of Justice (DOJ) over allegations of mortgage fraud. In his letter posted on X, Trump claimed he was acting within his authority under the Federal Reserve Act, alleging that Cook had signed a document claiming residence in two states. He mentioned, “For instance, I certified that my Michigan property would become my primary residence next year, as noted in the Criminal Referral. Yet, just two weeks later, I signed another document for a Georgia property.”

Trump continued to express concerns about the integrity of the Federal Reserve, saying, “The Federal Reserve has a crucial role in setting interest rates and regulating banks. Americans must trust the integrity of the individuals responsible for these vital policies. Given your deceitful and potentially criminal actions in financial matters, that trust is severely compromised. Your conduct reflects gross negligence in financial dealings that shake confidence in your ability as a financial regulator.”

Cook was nominated to the Federal Reserve Board by former President Joe Biden in 2022, following recommendations from Ohio Senator Sherrod Brown. Notably, the DOJ is also probing similar allegations against Democratic California Senator Adam Schiff, indicating that these mortgage fraud claims are not isolated.

Rising tensions between Trump and the Federal Reserve have been evident for months, particularly as Chair Jerome Powell has faced pressure to lower interest rates. Following Trump’s announcement about tariffs on certain countries, Powell raised concerns about the uncertainty these tariffs might introduce into the economy. He stated that the Central Bank would have likely made cuts to rates if it weren’t for these tariffs.

In July, Florida Republican Representative Anna Paulina Luna suggested referring Powell to the DOJ to investigate perjury allegations tied to the Federal Reserve’s substantial renovation project costing over $2 billion. This discussion came after Trump urged Congress to launch an investigation into Powell.

Powell’s term is set to last until May 15th, and he has frequently asserted his intention to remain in his post for the foreseeable future, as noted by reports.