Trump removes Fed Governor Lisa Cook 'effective immediately'

• Move marks 1st time that a US president attempts to fire a sitting Fed governor, which would give Trump majority in Fed board to shape monetary policy decisions

WASHINGTON/ISTANBUL

US President Donald Trump has announced that he has removed Federal Reserve Governor Lisa Cook from her position, citing allegations of mortgage fraud.

In a letter shared Monday through the US social media company Truth Social, which he owns, Trump told Cook: “You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.”

He said there was “sufficient cause” for her dismissal, pointing to a criminal referral that alleged Cook signed conflicting mortgage documents for properties in the states of Michigan and Georgia.

“It is inconceivable that you were not aware of your first commitment when making the second,” Trump said.

“The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve. In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity,” he added.

The move marks the first time that a president attempts to fire a sitting Fed governor.

Cook's dismissal by Trump may be contested in federal court. The legality of her termination may finally be decided by the Supreme Court, according to CNBC.

Trump would be on pace to have a Fed board with a majority of governors he has nominated if it is sustained.

The move came after Trump warned Cook last week that he would dismiss her if she did not step down.

Cook, who was nominated to the Fed's Board of Governors by former President Joe Biden in 2022, has previously denied any wrongdoing, and said she has “no intention of being bullied to step down.”

The allegations surfaced after Federal Housing Finance Agency chief Bill Pulte, a vocal critic of Fed Chair Jerome Powell, accused her of mortgage fraud and referred the matter to the Justice Department.

Michelle Bowman and Christopher Waller, two of the seven Fed governors in office today, were appointed by Trump. In 2017, Powell was nominated by Trump to be the Fed Chair.

Cook was one of six members of the Board of Directors as of Monday afternoon; Adriana Kugler resigned earlier this month, leaving one position open.

Trump nominated Stephen Miran, chair of the Council of Economic Advisors, to fill Kugler’s position.

If the Senate confirms Miran and Trump is successful in ousting Cook and gets her replacement approved, he will have a 4-to-3 majority of appointments on the board, giving him the power to influence the central bank's monetary policy choices.