Trump Announces Dismissal of Fed Governor Lisa Cook

President Donald Trump has announced the dismissal of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud.

“Under the authority granted by Article II of the U.S. Constitution and the amended Federal Reserve Act of 1913, I hereby remove you from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump stated in a letter addressed to Cook, which he posted on Truth Social on August 25.

Trump referenced a criminal referral submitted on August 15 by Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), to Attorney General Pam Bondi. Pulte alleged that Cook had declared a condominium in Atlanta as her primary residence, despite previously obtaining a mortgage on a Michigan property by certifying it as her principal residence. He added that the FHFA has documentation supporting what he described as “mortgage fraud.”

According to Trump, the Fed plays a critical role in setting interest rates, managing reserves, and supervising member banks. The American people, he stressed, must be able to trust that Fed officials responsible for shaping policy uphold the highest standards of integrity.

“In light of this deceitful and potentially unlawful conduct, neither the American people nor I can place confidence in you. At the very least, it demonstrates gross negligence in financial dealings and raises doubts about your competence,” Trump wrote.

Cook has not yet commented publicly on the dismissal.

Last week, however, she made clear she had no intention of resigning simply because of “questions raised on social media.”
“I take all inquiries about my financial history seriously as a Federal Reserve governor,” Cook said on August 21. “That is why I am gathering accurate information to respond to every legitimate question truthfully.”

The Fed’s Board of Governors consists of seven members, each appointed by the president and confirmed by the Senate, serving staggered 14-year terms without the possibility of reappointment.

Cook is one of three governors appointed by former President Joe Biden. Of the remaining members, two were appointed by Trump. If Cook steps down or is formally removed, Trump would be able to nominate her replacement — giving him a potential majority on the Fed’s governing board aligned with his monetary policy agenda.