US President Donald Trump has announced that he will fire Federal Reserve Governor Lisa Cook if she does not resign from her position. The move comes amid allegations of mortgage fraud related to Cook’s personal history. As an appointee of former President Joe Biden, Cook has faced criticism from the Trump administration over claims about her mortgages.
If successful, removing Cook “for cause” would give Trump the opportunity to reshape the central bank’s governing board, potentially for years to come. The move could also pave the way for a majority of the board to share Trump’s views on monetary policy. Federal Reserve Chair Jerome Powell has defended Cook, and she has consistently voted in line with Powell.
The allegations against Cook originated from FHFA Director Bill Pulte, who accused her of mortgage fraud related to claims that she took two different properties as her primary residence at the same time. The Department of Justice will investigate these claims after Pulte sent a criminal referral. Trump and his allies have been vocal in their criticism of Cook, with some accusing Powell of failing to take action.
Cook has denied any wrongdoing, stating that she takes her financial history seriously and is gathering accurate information to answer legitimate questions. President Trump’s comments come as Federal Reserve Chair Jerome Powell signaled that economic conditions may warrant interest rate cuts, amid rising inflation concerns and declining growth.
Source: https://www.cnbc.com/2025/08/22/trump-fire-fed-lisa-cook-powell.html