President Trump announces the firing of Fed Governor Lisa Cook, linked to mortgage fraud allegations.
“In accordance with the authority provided for in Article II of the United States Constitution and the Federal Reserve Act of 1913, as amended, I am removing you from your position on the Board of Governors of the Federal Reserve System (Fed), effective immediately,” President Donald Trump said in a statement to Fed Governor Lisa Cook, which he posted on Truth Social on August 25.
Mr. Trump reiterated the content of the petition for prosecution that the director of the US Federal Housing Finance Agency (FHFA) Bill Pulte sent to Attorney General Pam Bondi on August 15. Mr. Pulte accused Ms. Cook of declaring her permanent residence as an apartment in Atlanta, despite having previously taken out a mortgage to buy a house in Michigan and claiming that it was her primary residence. Mr. Pulte added that the FHFA has documents on Ms. Cook’s “mortgage fraud” behavior.
According to Mr. Trump, the Fed has an important role in setting interest rates, managing reserves and member banks. The American people need to be assured that they can trust Fed members to set policy.
“In the face of such dishonest and possibly illegal behavior, they cannot, and I cannot, place any confidence in you. At the very least, it demonstrates serious negligence in your financial dealings and raises questions about your competence,” Mr. Trump wrote.
Ms. Cook has not commented on the information.
Cook said last week that she had no intention of resigning because of “questions raised on social media.”
“I take seriously any questions about my financial history as a Fed member. Therefore, I am gathering accurate information to answer all legitimate and truthful questions,” Cook said on August 21, adding that she is gathering accurate information to answer questions.
The Fed’s seven-member Board of Governors is appointed by the US president and confirmed by the Senate, with each serving a non-reappointment 14-year term.
Cook is one of three governors appointed by former President Joe Biden. Two were picked by Trump from among the remaining governors. If Cook were to resign or be fired, Trump would be able to appoint a replacement and ensure that a majority of the Fed’s Board of Governors shares his views on monetary policy.