Trump Removes Federal Reserve Governor Lisa Cook

President Donald Trump dismissed Federal Reserve Governor Lisa Cook from her role on Monday.

In a post on Truth Social, Trump called for Cook’s resignation after Federal Housing Finance Agency Director Bill Prute referred her to the Department of Justice (DOJ) over allegations of mortgage fraud. He claimed he was acting under the Federal Reserve Act, stating that Cook had signed documents indicating residency in two different states. Trump mentioned, “I signed a document certifying that Michigan property will become my main residence for next year, as outlined in the Criminal Referral. Two weeks later, I signed another document regarding Georgia property.”

He further noted, “The Federal Reserve plays a critical role in setting interest rates and overseeing member banks. Americans must trust the integrity of those in charge of policy-making for the Federal Reserve. Given your potentially criminal conduct in financial matters, confidence in your integrity is lost. At the very least, the dubious action in question shows gross negligence in financial transactions and calls into question your reliability as a financial regulator.”

Cook was nominated for her position by former President Joe Biden in 2022, amidst tensions that have been brewing between Trump and the Federal Reserve. Trump has repeatedly urged the Fed to lower interest rates, expressing concerns about how tariffs imposed on various countries may contribute to uncertainty in economic conditions.

In a recent panel discussion, Powell indicated that the US Central Bank might have lowered rates sooner had it not been for Trump’s tariffs. Additionally, Florida Republican Rep. Anna Paulina Luna suggested referring Powell to the DOJ for investigation related to alleged perjury regarding renovations of the Fed’s headquarters.

Currently, Powell’s term is set to last until May 15th, and he has maintained that he does not plan to step down anytime soon, despite the ongoing scrutiny and political pressure.