President Trump on Friday threatened to fire Federal Reserve Governor Lisa Cook if she doesn’t resign from her position after members of his administration alleged that Cook engaged in mortgage fraud in the purchase of two properties earlier this decade.
“I’ll fire her if she doesn’t resign,” Trump told reporters on Friday. “What she did was bad, so I’ll fire her if she doesn’t resign.”
Trump’s comments were an escalation from earlier this week when he called on the Fed governor to resign on his social media platform, Truth Social.
“Cook must resign, now!!!” Trump posted on Wednesday morning. He included a link to a Bloomberg report about a letter sent by Federal Housing Finance Agency head Bill Pulte urging Attorney General Pam Bondi to investigate Cook over a pair of mortgages.
On Wednesday afternoon, Cook said in a statement, “I have no intention of being 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.”
Read more: How much control does the president have over the Fed and interest rates?
The pressure from Trump on the central banker came as Powell spoke at Jackson Hole, Wyo., in a key policy speech that appeared to open the door for a September interest rate cut.
Pulte wrote in a letter dated Aug. 15 that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Late Wednesday morning, the Wall Street Journal reported that Trump has told aides he is “considering attempting to fire” Cook. The Financial Times reported Thursday that the Department of Justice sent Fed Chair Jerome Powell a letter calling on the chair to remove Cook from her post.
The president’s threat Friday that he’ll fire Cook if she doesn’t resign also comes amid ongoing changes on the Fed’s Board of Governors.
Last week, Trump nominated Council of Economic Advisers Chair Stephen Miran to the Fed board to fill a seat left empty by Adriana Kugler, who stepped down from the board on Aug. 8. Should Cook also step down, Trump would have the opportunity to nominate another Fed governor.
The search for a replacement for Fed Chair Jerome Powell, whose term leading the central bank ends in May 2026, also continues in the background. Trump said last week that the field of possible replacements for Powell was “down to three or four” candidates.”
Trump has repeatedly called on Powell to cut rates more aggressively, coining the nickname “Too Late” for the Fed chair. Trump first appointed Powell to the role in 2017; former President Joe Biden renominated Powell as Fed chair in 2021.
The president has also targeted the central bank’s $2.5 billion renovation of the Federal Reserve’s headquarters as a “sort of” fireable offense for the Fed chair. Trump and Powell met at the renovation site in late July as Trump once again called for Powell to lower interest rates.
Powell is also a member of the Fed’s Board of Governors, and his term expires in 2028. It isn’t clear whether Powell will also vacate that post when his term as Fed chair ends next year.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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