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1h ago

Trump Says He Has Removed Fed Governor Lisa Cook, Citing Mortgage-Fraud Referral

The move tests statutory protections for Federal Reserve officials, with a court fight expected.

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.
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)
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Overview

  • The president posted a letter on his social media declaring Cook's immediate removal under Article II and the Federal Reserve Act.
  • The White House pointed to an FHFA criminal referral from Director Bill Pulte alleging Cook claimed two different primary residences on 2021 mortgages in Michigan and Georgia.
  • Cook has denied wrongdoing, said she would not resign, and has not been charged with any crime.
  • The Justice Department has taken steps to review the referral, according to reporting, while legal experts note that Fed governors can be removed only “for cause.”
  • The unprecedented action raises concerns about central-bank independence and could, if upheld, give the president another seat to fill on the Fed's board alongside an existing vacancy.