Trump Fires Federal Reserve Governor Lisa Cook Amid Allegations of Mortgage Fraud

US President Donald Trump fired Federal Reserve Governor Lisa Cook "effective immediately" on Monday, citing allegations of false statements on her mortgage agreements. Trump referred to the Federal Reserve Act as justification for the removal, stating that a referral from the Federal Housing Finance Agency's director provided "sufficient reason" to believe that Cook might have made "false statements" on one or more mortgage agreements. Cook, who sits on the Fed's rate-setting committee, had been a target of Trump's repeated broadsides against the Federal Reserve, including criticism of its chief Jerome Powell.

Key Takeaways:

• Trump cited allegations of false statements on Cook's mortgage agreements as grounds for her removal from the Federal Reserve.
• The Federal Reserve Act appears to provide a justification for Trump's removal of Cook, despite a Supreme Court order suggesting that Fed officials can only be removed for "cause."
• Cook has been a target of Trump's criticism of the Federal Reserve, particularly in relation to its interest rate policies.
• The Federal Housing Finance Agency's director had made a criminal referral to the US attorney general in August, which Trump cited as a reason for Cook's removal.
• Cook had previously stated that she had "no intention of being bullied to step down" and would take questions about her financial history seriously.
• The Fed did not immediately respond to media queries on Trump's latest announcement.
• Cook has served on the Council of Economic Advisers under former president Barack Obama and was sworn in as a Fed governor in May 2022.
• She has been reappointed to the board since then and is set to serve until 2038.

Statistics:

• The Federal Reserve has held interest rates at a range between 4.25% and 4.50% since December.
• The next policy meeting is scheduled for September, at which Powell opened the door to lowering rates.
• Cook has been a member of the Fed's rate-setting committee since she took office in May 2022.
• The Federal Housing Finance Agency's director made a criminal referral to the US attorney general in August, which Trump cited as a reason for Cook's removal.
• The Trump administration has pursued allegations of mortgage fraud against high-profile Democrats in the past.

Sources:

• AFP Copyright 2025 Alliance News Ltd. All Rights Reserved.