Particle.news
Download on the App Store
158 ARTICLES
·
26m ago

Trump Says He Removed Fed Governor Lisa Cook Over Mortgage Allegations

The move tests the law that permits firing Federal Reserve governors only for cause.

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. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)
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)
Image
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

  • In a letter posted on Truth Social, President Trump declared Cook's immediate removal from the Board of Governors, citing authority under Article II and the Federal Reserve Act.
  • FHFA Director Bill Pulte accused Cook of misstatements on two 2021 mortgage applications and sent a criminal referral to the Justice Department; Cook denies wrongdoing and says she will not resign.
  • Legal experts note the Federal Reserve Act's for-cause protection makes a court challenge likely, leaving the ultimate status of Cook’s seat uncertain.
  • Bond markets reacted with a steeper Treasury yield curve as two‑year yields fell and longer‑dated yields rose, reflecting shifting expectations for Fed policy and risk.
  • If the ouster is upheld, Trump would gain another vacancy to fill on the seven‑member board, alongside his pending nominee Stephen Miran for an existing open seat.