President Trump on Monday moved to fire Federal Reserve Gov. Lisa Cook over allegations she committed mortgage fraud.
“I have found there to be enough reason to dismiss you from your role,” Trump stated in a letter addressed to Cook, which was shared on Truth Social.
Last week, Trump urged for Cook’s resignation, who was appointed by then-President Biden in 2022, due to accusations made by Bill Pulte. Pulte, a Trump supporter and the head of the Federal Housing Finance Agency, claimed that Cook was involved in mortgage fraud by listing two properties as primary residences. Trump mentioned that he would seek to remove Cook if she did not step down.
Pulte’s initial claims included images of signatures apparently attributed to Cook, applied to two separate primary residences: one located in Michigan and the other referred to as an “Atlanta condo.”
The president can fire members of the Federal Reserve board for cause, but it’s unclear if the allegations against Cook would reach that standard.
In his letter, Trump emphasized, “The Federal Reserve holds significant responsibility for determining interest rates and supervising reserve and member banks. It is essential that the American public trusts the integrity of those tasked with policy-making and overseeing the Federal Reserve. Given your dishonest and possibly unlawful actions in a financial matter, they cannot, and I lack faith in your integrity.”
The Federal Reserve did not immediately respond to a request for comment.
Last week, Cook responded to the allegations, asserting that she would not be “intimidated into resigning from her role because of issues raised in a tweet.”
“I am committed to addressing any inquiries regarding my financial background with seriousness as a Federal Reserve member. Therefore, I am compiling accurate information to respond to any valid questions and provide the truth,” stated Cook.
If Trump successfully removes Cook, it would give him an opening to appoint another member to the board of governors that aligns with his vision for the economy. Trump has already appointed one replacement for an opening created by Adriana Kugler, who announced she would resign early before her term expired in January.
Trump has relentlessly criticized Federal Reserve Chairman Jerome Powell and the rest of the board for declining to lower interest rates. Powell has pointed to economic uncertainty created by Trump’s tariff policy.
