Fed Governor Responds to Trump’s Dismissal Announcement

Federal Reserve Governor Lisa Cook firmly stated she will not resign after President Donald Trump announced his decision to remove her from the central bank’s board. According to reports, Trump declared the dismissal effective immediately, citing allegations surrounding her mortgage dealings. Cook has not faced any criminal charges, but Trump claims these allegations undermine her credibility, warranting her dismissal.

In her response, Cook maintained that Trump lacks the legal authority to push her out. “I will not resign,” she affirmed through her lawyer, emphasizing her commitment to her role in supporting the American economy since her appointment in 2022.

Cook’s legal team described Trump’s action as “illegal,” promising to pursue appropriate measures in response. Meanwhile, Trump refers to an earlier statement by Bill Prute, who is involved with federal housing finance institutions, alleging that Cook signed documents falsely claiming residency in multiple states. Trump insists he is utilizing his powers under the Federal Reserve Act to assert this removal.

In his statement, Trump highlighted the importance of public confidence in the integrity of Federal Reserve officials. He criticized Cook’s conduct in financial matters, asserting that it demonstrates negligence undermining her reliability as a financial regulator.

Notably, Lisa Cook was nominated by former President Joe Biden in 2022, marking her as the first Black woman in this role. She was reappointed in the following year, with her term lasting until 2038.

The tensions between Trump and the Federal Reserve have been palpable recently, particularly as Fed Chairman Jerome Powell has advocated for lower interest rates. Neither Cook nor the White House has provided immediate comments on the situation.