US President Donald Trump has threatened to fire Federal Reserve governor Lisa Cook if she does not resign, citing allegations of falsifying mortgage records. However, his ability to fire a Fed governor is limited by law.
Mr. Trump’s threat comes as the administration seeks to remake the top ranks of the nation’s central bank, with critics accusing Ms. Cook and other officials of wrongdoing. The Federal Reserve’s chair, Jerome Powell, has been a target of Mr. Trump’s ire, who has called him out for his handling of the economy.
The law that charts the Fed allows the president to dismiss policymakers for cause, which is generally interpreted as gross professional negligence or malfeasance. However, many legal experts believe this term has little legal precedent and sets a high bar to prove misconduct.
Despite Mr. Trump’s threat, Ms. Cook has vowed to cooperate with any legitimate questions and provide facts. The Federal Reserve has pledged to gather accurate information before making policy decisions.
The administration’s attacks on the Fed have overshadowed an exclusive economic policy conference in Jackson, Wyoming, where Mr. Powell delivered a closely watched speech. Despite the tensions, the central bank is preparing to restart interest rate reductions next month.
Mr. Trump wants interest rates to be 3 percentage points lower, while the Federal Reserve has indicated it will proceed carefully with cuts, suggesting limited reduction. The president’s anger towards the Fed and its leadership has been ongoing, but it remains unclear whether he can successfully oust officials or achieve his policy goals.
Source: https://www.nytimes.com/2025/08/22/us/politics/trump-lisa-cook-federal-reserve-governor.html