President Trump on Monday moved to fire Federal Reserve board member Lisa Cook over allegations she committed mortgage fraud.
“I have determined that there is sufficient cause to remove you from your position,” Trump wrote in a letter to Cook, which was posted on Truth Social.
Trump last week called for Cook, who was appointed by former President Biden in 2022, to resign following allegations by Bill Pulte, a Trump ally and the head of the Federal Housing Finance Agency, that she committed mortgage fraud by listing two primary residences. Trump said he would try to fire Cook if she did not resign.
In his initial allegations, Pulte included photographs of document signatures apparently belonging to Cook that allegedly applied to two different primary residences, one in Michigan and another described as an “Atlanta condo.”
The president can fire members of the Federal Reserve board for cause, but it’s unclear if the allegations against Cook would reach that standard.
“The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks,” Trump wrote in his letter to Cook. “The American people must be able to have full confidence in the honestly 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.”
The Federal Reserve did not immediately respond to a request for comment.
Cook last week responded to the allegations against her by saying she would not be “bullied to step down from my position because of some questions raised in a tweet.”
“I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts,” Cook said in a statement.
If Trump successfully removes Cook, it would give him an opening to appoint another member to the board of governors who aligns with his vision for the economy. Trump has already appointed one replacement for an opening created by Adriana Kugler, who announced she would resign early before her term expired in January.
Trump has relentlessly criticized Federal Reserve Chair Jerome Powell and the rest of the board for declining to lower interest rates. Powell has pointed to economic uncertainty created by Trump’s tariff policy as a reason for not doing so.
Updated at 8:27 p.m. EDT
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