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58m ago

Trump Fires Fed Governor Lisa Cook in Unprecedented Move

Citing an FHFA criminal referral as cause, the White House sets up a court test of presidential power over the Fed.

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 notified Cook she was removed effective immediately in a letter invoking Article II and the Federal Reserve Act.
  • FHFA Director Bill Pulte alleged she claimed two homes as primary residences in 2021 and referred the case to the Justice Department; Cook has not been charged and previously said she would not resign.
  • Legal experts say no president has removed a Fed governor before and expect challenges over the law’s narrow 'for cause' standard that could reach the Supreme Court.
  • The ouster opens another Board of Governors seat after Adriana Kugler’s recent resignation, positioning the White House to seek nominees more supportive of rate cuts, with Stephen Miran already nominated to fill the other vacancy.
  • Treasury markets signaled policy risk with a steeper yield curve as short-dated yields fell and longer-term yields rose.