Trump Fires Federal Reserve Governor Lisa Cook over Mortgage Fraud Allegations

President Donald Trump has removed Federal Reserve Governor Lisa Cook immediately, as stated in a letter he shared on Truth Social on Monday night.

In the letter, Trump mentions his authority under the Constitution and the Federal Reserve Act of 1913, citing a "criminal referral" from Federal Housing Finance Agency Director William Pulte accusing Cook of mortgage fraud.

Cook responded by stating that Trump lacks the authority to fire her and that she will not resign. Her attorney, Abbe Lowell, criticized Trump's actions as lacking legal basis and announced plans to challenge the removal in court.

Cook's attorney later confirmed that Cook intends to sue, emphasizing that Trump's attempt to remove her lacks factual or legal grounds.

Under the Federal Reserve Act, governors can only be removed "for cause." Cook has not been charged with any crime, setting the stage for a potential legal battle between the Federal Reserve and the executive branch.

The move against Cook comes amidst ongoing pressure from Trump on the central bank, with Trump and his allies criticizing the institution and its chair, Jerome Powell, over interest rate policies.

Sen. Elizabeth Warren condemned Cook's removal as an authoritarian power grab that violates the Federal Reserve Act and called for its reversal through legal means.

Cook, the first Black woman on the Fed's board, has faced allegations of mortgage fraud, with Trump demanding her resignation following Pulte's accusations.

The U.S. Dollar Index dropped significantly following Trump's announcement, impacting global currency strength. Cook, appointed by President Joe Biden, holds a permanent vote on the Fed's rate-setting committee.

If removed from the board, Trump would have the opportunity to further influence the central bank by appointing new members, including a potential new chair when Powell's term ends.