Donald Trump Fires Fed Governor Lisa Cook
Donald Trump fired Lisa Cook, the first African-American woman governor of the Federal Reserve, as he had threatened days ago
According to analysts, this is an unprecedented move and represents a significant escalation in the president's battle with the Fed, which he has blamed for taking too long to lower rates interest rates.
Cook recently came under fire from Trump and members of his administration for allegedly committing mortgage fraud. The Justice Department has said it plans to investigate the allegations, which were initially raised by Federal Housing Finance Agency Director Bill Pulte.
The president had called for Cook's resignation on August 20 after Trump-appointed Federal Housing Finance Agency Director William Pulte accused her of misrepresenting two of her mortgages as primary residences. The U.S. Department of Justice said it is investigating the matter.
“I have determined there is sufficient cause to remove you from office,” Trump said in a letter to Cook posted on his Truth Social platform.
Prior to the announcement, Cook, the first Black woman to serve on the Fed board, said she had “no intention of being bullied into resigning” after Trump called for her resignation on Wednesday amid allegations over mortgages she holds in Michigan and Georgia.
Cook’s firing marks an escalation in Trump’s attempt to reshuffle the makeup of the Federal Reserve’s top brass, as he has been pushing the central bank to implement dramatic interest rate cuts at a time when Fed officials have kept rates steady amid lingering concerns about inflation.
The president has also repeatedly threatened to fire Federal Reserve Chairman Jerome Powell, who was nominated by Trump during his first term in the White House and later nominated for a second term by Biden.
According to analysts, it is unclear whether Trump has the legal authority to fire Cook over these allegations. It is not even ruled out that the firing could be challenged in court, possibly even going all the way to the Supreme Court.
Lisa D. Cook was sworn in to the Board of Governors of the Federal Reserve System on May 23, 2022, to fill a vacant term ending January 31, 2024. She was reappointed to the Board on September 8, 2023, and sworn in on September 13, 2023, for a term ending January 31, 2038.