Trump Fires Fed Governor Lisa Cook Over Allegations of Mortgage Fraud

President Donald Trump fired Federal Reserve governor Lisa Cook on Monday evening, citing allegations of mortgage fraud. The decision comes as part of a pressure campaign on the independent Fed, which Trump seeks to influence in his efforts to sway interest rates and economic policy.

The Federal Reserve Act provides that you may be removed, at my discretion, for cause. See 12 U.S.C. § 242. I have determined that there is sufficient cause to remove you from your position.

In a letter posted on social media, Trump wrote: "The executive power of the United States is vested in me as President and, as President, I have a solemn duty that the laws of the United States are faithfully enacted. I have determined that faithfully enacting the law requires your immediate removal from office.”

Cook has not been legally charged with any such fraud offense and previously stated she would not be "bullied" into resignation.

The illegal attempt to fire Lisa Cook is the latest example of a desperate President searching for a scapegoat to cover for his own failure to lower costs for Americans. It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.

Said Sen. Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee.

The news comes as Trump has maintained pressure on the independent Federal Reserve and its Chairman Jerome Powell to lower interest rates. The president has at times insulted Powell and threatened to remove him from his position, calling him a "stubborn MORON" on social media this month and urging the rest of the Fed's Board of Governors to exert more control over decisions.

Trump has also nominated Stephen Miran, an economist from within his administration, to replace former Federal Reserve governor Adriana Kugler. Krugler stepped down in August, and Miran's appointment is subject to congressional approval.

The Federal Reserve left the federal funds rate unchanged at a range of 4.25% to 4.50%, where it has remained since December 2022.