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Trump, Donald

Trump Administration Seeks to Remove Fed Governor Lisa Cook Amid Independence Concerns

Strategic Insights

— 2 min read

The administration of United States President Donald Trump has asked an appeals court to remove Lisa Cook from the Federal Reserve's board of governors by Monday, seeking to shape the board before the Fed's next interest rate-setting meeting. This move comes as Senate Republicans are pushing to confirm Stephen Miran, Trump's nominee to an open spot on the Fed's board. The request represents an extraordinary effort by the White House to intervene in the Fed's decision-making process, sparking concerns over the central bank's independence.

Key Takeaways:

  • The Trump administration has asked an appeals court to remove Fed Governor Lisa Cook from the board by Monday, citing alleged mortgage fraud as grounds for her removal.
  • Cook denies any wrongdoing and has filed a lawsuit against Trump, claiming his attempt to fire her was a pretext to remove her for her monetary policy stance.
  • The case has implications for the Fed's ability to set interest rates without regard to politicians' wishes, as widely seen as critical to keeping inflation under control.
  • The Supreme Court and lower appeals courts have temporarily lifted several other rulings that briefly blocked Trump from firing officials at independent agencies.
  • The DC Circuit blocked Trump from firing US Copyright Office director Shira Perlmutter while she appeals a lower court's refusal to reinstate her to the post.
  • Cook has voted with the Fed's majority on every rate decision since 2022, including on both rate hikes and rate cuts.
  • Trump has repeatedly berated Fed Chair Jerome Powell for his stewardship over monetary policy, demanding that the Fed cut rates immediately and aggressively.
  • The law that created the Fed says governors may be removed only "for cause", but does not define the term nor establish procedures for removal.
  • No president has ever removed a Fed governor, and the law has never been tested in court.
  • The mortgage fraud claims against Cook relate to actions she took prior to her US Senate confirmation in 2022.
  • The Justice Department has launched a criminal mortgage fraud probe into Cook and has issued grand jury subpoenas out of both Georgia and Michigan.

Statistics:

  • Cook has been a Fed Governor since 2022.
  • Trump has repeatedly called for the Fed to cut interest rates, with the most recent demand coming in August 2025.
  • The Fed has remained independent from the White House since its creation in 1913.
  • No Fed Governor has ever been removed before the current case.
  • The Federal Housing Finance Agency has launched a probe into Cook's mortgage applications.

Sources:

  • [Al Jazeera: "US Federal Court temporarily blocks Fed governor Lisa Cook's firing"] https://www.aljazeera.com/economy/2025/9/10/us-federal-court-temporarily-blocks-fed-governor-lisa-cooks-firing
  • [Al Jazeera: "Will Trump's latest attack on the Fed erode central bank's independence?"] https://www.aljazeera.com/economy/2025/8/26/will-trumps-latest-attack-on-the-fed-erode-central-banks-independence
  • [Al Jazeera: "US Fed leaves interest rates unchanged amid economic uncertainty"] https://www.aljazeera.com/economy/2025/6/18/us-fed-leaves-interest-rates-unchanged-amid-economic-uncertainty
  • [Al Jazeera: "Federal Reserve governor Lisa Cook sues Trump for his attempt to fire her"] https://www.aljazeera.com/economy/2025/8/28/federal-reserve-governor-lisa-cook-sues-trump-for-his-attempt-to-fire-her
  • [Al Jazeera: "Justice Department launches criminal probe into Cook's mortgage applications"] https://www.aljazeera.com/economy/2025/8/26/justice-department-launches-criminal-probe-into-cooks-mortgage-applications
  • [Reuters: "Justice Department issues grand jury subpoenas in Cook's mortgage fraud case"]

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