US President Donald Trump has announced the removal of Fed Governor Lisa Cook from her post, citing allegations of mortgage fraud.
In a letter shared on Truth Social, Trump said Cook was dismissed from the Federal Reserve Board of Governors with “immediate effect.” He claimed there was “sufficient cause” for her removal, referring to a criminal referral alleging she signed conflicting mortgage documents for homes in Michigan and Georgia.
Trump wrote that the integrity of the Federal Reserve depends on public trust. “The American people must be able to have full confidence in the honesty of its members. In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence,” he added.
The decision follows Trump’s warning last week that he would fire Cook if she did not resign voluntarily. Despite mounting pressure, Cook had publicly denied any wrongdoing. She said she had “no intention of being bullied to step down.”
Fed Governor Lisa Cook was nominated to the central bank’s board in 2022 by then-President Joe Biden. Her removal marks a rare move against a sitting member of the Fed, an institution designed to operate independently of political influence.
The allegations against her surfaced after Bill Pulte, head of the Federal Housing Finance Agency and a critic of Fed Chair Jerome Powell, accused Cook of mortgage fraud. He later referred the matter to the Department of Justice for review.
With this development, questions remain about how the vacancy on the Fed’s Board of Governors will be filled and whether Cook will challenge the dismissal. For now, Trump has emphasized that accountability and transparency within the Federal Reserve are his top priorities.
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