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Trump Announces Immediate Removal of Fed Governor Lisa Cook

The unprecedented action faces immediate legal uncertainty under the Federal Reserve’s “for cause” removal standard.

Lisa Cook, member of the Board of Governors of the US Federal Reserve, attends a Federal Reserve Board open meeting discussing proposed revisions to the board's supplementary leverage ratio standards at the Federal Reserve Board building in Washington, DC, on June 25, 2025.
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FILE - Board of Governors of the Federal Reserve member Lisa Cook, speaks during a conversations with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management, the hospitality industry, and the housing and education sectors at the Federal Reserve building, Sept. 23, 2022, in Washington. (AP Photo/Manuel Balce Ceneta, File)
Lisa Cook, then a nominee to the Board of Governors of the Federal Reserve System, testifies during a Senate Banking nominations hearing on June 21, 2023 in Washington, DC.

Overview

  • Trump posted a letter on Truth Social stating Cook was "hereby removed" effective immediately, citing Article II and a criminal referral from FHFA Director Bill Pulte over alleged 2021 mortgage misstatements.
  • Cook denied wrongdoing, rejected calls to resign, and questioned the president’s authority to fire a Federal Reserve governor.
  • Legal scholars say the move is likely to trigger a court challenge and note no president has previously fired a Fed governor, with litigation potentially allowing Cook to remain in her seat.
  • Treasury markets reacted with a steeper yield curve as two‑year yields fell and longer‑term yields rose, reflecting concern over Fed independence and future rate policy.
  • The referral that prompted the action has not produced charges, and if the removal stands it would open a Board vacancy that Trump could seek to fill with a nominee more aligned with his push for lower rates.