Trump Dismisses Federal Reserve Governor
(MENAFN) U.S. President Donald Trump on Monday abruptly dismissed Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud and asserting a loss of public trust in her integrity.
In a letter made public via his Truth Social platform, Trump invoked constitutional and statutory authority to justify Cook’s immediate removal.
“Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump wrote.
The president criticized Cook's alleged financial misconduct as grounds for termination.
“The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks,” Trump continued.
“The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve. In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”
The firing follows public accusations made Wednesday by Federal Housing Finance Agency Director Bill Pulte, who claimed Cook committed mortgage fraud and referred the matter to the Department of Justice for possible criminal investigation.
That same day, Trump demanded Cook's resignation following Pulte's allegations. Cook responded shortly after, asserting she had "no intention of being bullied to step down from my position because of some questions raised in a tweet."
Cook was nominated by then-President Joe Biden in 2022. Her dismissal—if upheld—would allow Trump to appoint a replacement, potentially reshaping the Federal Reserve’s leadership for years to come.
Legal experts note, however, that the president’s power to remove a Fed governor is limited. The Federal Reserve Act of 1913 states such officials may only be dismissed “for cause,” without defining what qualifies. This ambiguity sets the stage for a possible legal battle, with local media reporting the issue may escalate to the Supreme Court.
The action intensifies long-standing concerns over the central bank’s independence during the Trump administration.
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