President Trump announced late Monday that he has removed Federal Reserve Governor Lisa Cook from her post, following through on his earlier threat to oust her if she refused to resign. The decision comes after members of his administration accused Cook of mortgage fraud related to the purchase of two properties earlier this decade.
“You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump wrote in a letter addressed to Cook and shared on social media. “I have determined there is sufficient cause to remove you from your position.”
Trump cited conflicting declarations made by Cook about her primary residence. She initially claimed a Michigan property as her main home but signed a separate agreement two weeks later stating that a Georgia property would serve as her primary residence. The president argued it was “inconceivable” she was unaware of the initial pledge and “impossible” she intended to honor both.
“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,” Trump wrote. “At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
The unprecedented move thrusts the Federal Reserve into uncharted territory and is expected to trigger a legal battle that could reach the Supreme Court. The central bank told Yahoo Finance it had no immediate comment.
The president had been pushing for Cook’s resignation since last week after a letter from Federal Housing Finance Agency head Bill Pulte urged Attorney General Pam Bondi to investigate her over the two mortgages.
Trump had said Friday he would fire Cook just moments after Fed Chair Jerome Powell delivered a key policy speech in Jackson Hole, Wyoming, which appeared to open the door for a September interest rate cut.
Pulte’s letter, dated Aug. 15, accused Cook of falsifying bank documents and property records to secure more favorable loan terms, potentially committing mortgage fraud under criminal law.
The Financial Times reported last Thursday that the Department of Justice sent Fed Chair Jerome Powell a letter urging him to remove Cook from her position.
Read more: How much control does the president have over the Fed and interest rates?
Last week, Cook issued a statement saying, “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.”
Cook’s removal comes amid ongoing changes on the Fed’s Board of Governors. Earlier this month, Trump nominated Council of Economic Advisers Chair Stephen Miran to the Fed board to fill a seat left empty by Adriana Kugler, who resigned on Aug. 8. With Cook’s departure, Trump is expected to nominate another Fed governor.
Meanwhile, the search for a replacement for Fed Chair Jerome Powell, whose term ends in May 2026, continues. Trump recently said the field of potential successors for Powell is “down to three or four” candidates.
Trump has repeatedly pressured Powell to cut interest rates more aggressively, nicknaming him “Too Late.” Trump originally appointed Powell in 2017, and former President Joe Biden renominated him as Fed chair in 2021.
The president has also criticized the Fed’s $2.5 billion renovation of its headquarters, calling it a “sort of” fireable offense for the chair. Trump and Powell met at the renovation site in late July, during which Trump again pushed for lower interest rates.
Powell remains a member of the Fed’s Board of Governors, with his term running through 2028. It is unclear whether he will vacate that post when his term as Fed chair ends next year.
