Washington, D.C. — President Donald Trump has removed Federal Reserve Governor Lisa Cook from her post, citing allegations of falsified information on mortgage documents, in a move that intensifies White House pressure on the traditionally independent central bank.
The dismissal, announced Monday, came in a letter from Trump invoking provisions of the Federal Reserve Act that allow the president to remove a Fed governor “for cause.” In his statement, Trump said a recent criminal referral from the Federal Housing Finance Agency (FHFA) provided grounds to believe Cook “made false statements” on one or more mortgage agreements.
A Rare Presidential Move Against the Fed
The decision is notable because presidents have limited authority over Federal Reserve officials, whose terms are designed to shield them from political interference. A recent Supreme Court opinion emphasized that Fed governors can only be removed for misconduct or similar “cause,” setting a high bar for dismissal.
Trump leaned on an August 15 referral from FHFA Director — and close Trump ally — Mark Calabria to the U.S. attorney general, alleging Cook’s financial disclosures contained discrepancies.
Cook Pledges to Defend Herself
Earlier this month, Cook dismissed calls for her resignation, saying she “would not be bullied” but welcomed scrutiny of her financial records. The Federal Reserve has not yet commented on the president’s announcement.
Cook, a former White House economic adviser under President Barack Obama and the first Black woman appointed to the Fed Board, has been a strong advocate for tighter financial regulation and diversity initiatives at the central bank. Her ouster is expected to deepen political tensions over the Fed’s independence as it navigates interest rate policy in an election year.
