Trump Directs Federal Reserve Governor Lisa Cook to Be Removed Immediately Due to Mortgage Fraud Allegations

US President Donald Trump said that Federal Reserve Governor Lisa Cook would be fired right away. This makes things worse between the White House and the US central bank.

US President Donald Trump said that Federal Reserve Governor Lisa Cook would be fired right away. This makes things worse between the White House and the US central bank.

Trump said that there was “sufficient reason” to think that Cook had lied on mortgage agreements. He used constitutional powers to support his claim that he had the right to fire Cook.

Cook replied that the president’s move was wrong, saying that he didn’t have the power to fire her and that she would not quit. She said in a statement, “President Trump tried to fire me ‘for cause,’ but the law doesn’t allow that to happen, and he has no power to do so.” “I’m not going to quit.” As I have done since 2022, I will continue to do what I need to do to help the American economy.

Abbe David Lowell, Cook’s lawyer, also said she would appeal the decision, saying, “We will do whatever it takes to stop (Trump’s) attempted illegal action.”

This is the first time that a current US president has tried to fire a member of the Federal Reserve board, which has never been done before. Cook is one of seven governors on the board, and he is also one of 12 people on the Fed’s group that sets interest rates.

In 2022, former President Joe Biden put her in the job, making her the first African American woman to do so. Cook agreed with Chair Jerome Powell and most of the other members of the Fed to keep interest rates the same at their most recent meeting in July, where rates were set.

Trump wrote a letter to Cook late Monday night and shared it on his Truth Social platform. In it, he accused her of giving false information on two mortgage documents for her main home, one in Michigan and one in Georgia. He said that the inconsistency makes her less trustworthy.

The claims come from a letter that Trump supporter and housing finance regulator Bill Pulte sent to Attorney General Pam Bondi. In the letter, Pulte called the situation a “criminal referral” and asked for a probe. Cook had said before that she heard about the accusations from the news and that the problem started with a mortgage application she made four years ago, before she started working at the central bank.

Cook said last week, “I have no intention of being forced to resign because of some questions raised in a tweet.” She also said that she is gathering information to answer any “legitimate questions” about her financial past.

Experts say that the White House may have to defend its choice in court because it brings up important legal questions. If Cook or the Fed refuses to follow Trump’s order, it could lead to a fight between the president and the central bank.

The Federal Reserve, which stopped being controlled by the US government in 1951, hasn’t said anything about Trump’s choice yet.

Trump has also called Chair Jerome Powell a “numbskull” and a “stubborn moron” many times for not agreeing with the president’s call for big interest rate cuts. Powell, on the other hand, recently hinted that rates might be lowered in September. This means that Trump’s tariffs may only have a short-term effect on inflation.

The event was quickly responded to by the markets, and during Asian trading on Tuesday, the US dollar fell against major global currencies. People who invest money think that Trump’s possible choice to replace Cook could change how the Fed handles interest rates.

Julia Lee, head of client coverage for FTSE Russell, said, “The most important question for markets is what will happen if Trump succeeds in replacing Cook: could he change the composition of the Fed? How would that affect how the market sees the US as an investment destination?”

Shoki Omori, top strategist at the Japanese bank Mizuho, was also worried about the growing pressure on Powell. He warned that future appointees “may just listen to whatever the White House wants,” which, in his words, is “not looking good.”