Trump Removes Federal Reserve Governor Lisa Cook Amid Mortgage Fraud Allegations

In an unprecedented move, President Donald Trump announced on Monday that he was removing Federal Reserve Governor Lisa Cook from her post, effective immediately. The decision, which was shared in a letter on social media, cites allegations of mortgage fraud as the reason for her dismissal.

The allegations, initially raised by Federal Housing Finance Agency (FHFA) head Bill Pulte, center on Cook’s alleged conflicting claims about her primary residence. Pulte claims that in 2021, Cook declared one property in Michigan and another in Georgia as her primary residence to obtain favorable loan terms. Trump’s letter to Cook states that there is “sufficient cause” to remove her, citing “deceitful and potentially criminal conduct.” The U.S. Justice Department has reportedly opened an investigation, though no charges have been filed.

Cook, the first Black woman to serve on the Fed’s board, has firmly rejected the claims and the president’s authority to fire her. In a statement released through her attorney, Abbe Lowell, Cook said she would not resign, stating, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so.” She has vowed to continue her duties and plans to take legal action to challenge the removal.

The Federal Reserve Act allows for a governor to be removed by a president only “for cause,” a provision that legal experts believe is meant to protect the central bank’s independence from political pressure. Cook’s 14-year term was set to run until 2038, and her removal, if successful, would give Trump the opportunity to fill another vacancy on the seven-member board. The dispute is expected to lead to a legal battle that could reach the Supreme Court and will likely test the limits of presidential power over the Federal Reserve.

Source: African Publicity