Federal Reserve governor Lisa Cook is refusing to resign even though President Donald Trump claimed in a letter that she was “removed” from her position “effective immediately.” Trump posted the letter to Cook on Truth Social just five days after asking for her resignation in a previous post on the same platform.
Trump said he had the authority under the Constitution and the Federal Reserve Act of 1913 to remove Cook. The law allows the president to remove governors “for cause.” In his letter, Trump said there was “sufficient reason” to think Cook “made false statements on one or more mortgage agreements.” He added that enforcing the law properly required her immediate removal.
The allegations come from Bill Pulte, a Trump appointee to an agency that regulates Fannie Mae and Freddie Mac. Pulte claimed Cook listed two main homes, one in Ann Arbor and one in Atlanta in 2021, to get better mortgage terms.
“It’s very odd to see people try to twist things to justify mortgage fraud. This is a serious crime that can carry up to 30-year prison sentences,” Pulte told “Mornings with Maria” on Monday.
“I think the president has a reason to fire Lisa Cook. But whether he does it or not is up to him. Mortgage fraud will be investigated no matter who does it, Republican or Democrat, and Lisa Cook is no exception.”
On Aug. 15, Pulte sent the Justice Department a referral accusing Cook of falsifying bank documents and property records.
Cook responded: “President Trump claimed 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 my work to help the American economy, as I have since 2022.” Cook was appointed by then-President Joe Biden in 2022.
Cook is represented by attorney Abbe Lowell, who has worked with Hunter Biden, New York Attorney General Letitia James, and Jared Kushner and Ivanka Trump.
“President Trump has once again tried to ‘fire by tweet.’ His actions lack proper process, legal basis, or authority. We will take action to prevent this illegal attempt,” Lowell said. He later added that he would file a lawsuit to challenge Trump’s firing of Cook.
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based only on a referral letter, has no factual or legal basis. We will file a lawsuit against this illegal action,” Lowell said.
Lisa Cook is the first Black woman to serve as a governor on the Federal Reserve Board.
House Minority Leader Rep. Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md. criticized Trump’s attempt to fire Cook.
“This is a major constitutional outrage,” Raskin told Axios.
Warren called it “an authoritarian power grab,” saying Trump is “desperately looking for someone to blame for his failure to lower costs for Americans, and firing Lisa Cook is his latest move.”
Jeffries said there is not “a shred of credible evidence that she has done anything wrong.” He added, “If anyone is unfit for public office because of deceitful or criminal conduct, it is the current occupant of the White House. The American people are not buying your false claims against a distinguished public servant.”
Trump’s attempt to remove Cook comes as he continues a tense standoff with Federal Reserve Chair Jerome Powell over interest rates. Trump and his allies have repeatedly asked the Fed to cut interest rates to help the economy and reduce the cost of the national debt, which is over $37 trillion.
