Federal Reserve Governor Lisa Cook is refusing to leave her position despite President Donald Trump declaring in a letter that she was “removed” from office effective immediately. The president shared the letter on Truth Social, just five days after first demanding her resignation on the same platform.
Trump pointed to his authority under the Constitution and the Federal Reserve Act of 1913, which allows presidents to remove Fed governors “for cause.” He argued that Cook had provided “false statements on one or more mortgage agreements,” which he said was sufficient grounds for dismissal.
The allegations surfaced after Bill Pulte, a Trump appointee to an agency overseeing Fannie Mae and Freddie Mac, accused Cook of claiming two primary residences—in Ann Arbor and Atlanta in 2021—to secure more favorable mortgage terms.
Pulte, speaking on Fox Business, called mortgage fraud a “very serious crime” that can carry prison sentences of up to 30 years. He said, “I believe the president has ample cause to fire Lisa Cook. Whether he wants to do that or not is entirely up to the president. However, we will go where mortgage fraud is. If mortgage fraud is with Republican or Democrat, it doesn’t matter… we’re going to come after you. And Lisa Cook is no exception.”
On August 15, Pulte submitted a criminal referral to the Justice Department, accusing Cook of falsifying bank documents and property records.
Cook, who was appointed by President Joe Biden in 2022, rejected the president’s authority to dismiss her. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she said in a statement to Fox News Digital.
Cook has retained attorney Abbe Lowell, known for representing Hunter Biden, New York Attorney General Letitia James, and Jared Kushner and Ivanka Trump. Lowell accused Trump of attempting to “fire by tweet” without proper legal authority, vowing to take “whatever actions are needed to prevent his attempted illegal action.”
Lowell later announced that he will file a lawsuit challenging Trump’s move, saying, “President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis.”
Democrats quickly condemned Trump’s decision. Rep. Jamie Raskin called it “an outrage and a scandal,” adding, “This is the big one constitutionally.” Sen. Elizabeth Warren described the move as “an authoritarian power grab,” accusing Trump of scapegoating Cook to cover for economic struggles. House Minority Leader Hakeem Jeffries also defended Cook, saying there was not “a shred of credible evidence that she has done anything wrong.”
Jeffries went further, stating, “To the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House. The American people are not buying your phony projection and slander of a distinguished public servant.”
The fight over Cook’s position comes as Trump continues to clash with Federal Reserve Chair Jerome Powell. The president and his allies have pressured the Fed to cut interest rates to stimulate the economy and ease the burden of servicing the national debt, which now exceeds $37 trillion.
