President Donald Trump says he has fired Federal Reserve Governor Lisa Cook, an unprecedented move she is calling “illegal,” per the Associated Press.
In a letter posted to his Truth Social platform on Monday (August 25), Trump announced Cook’s firing, noting allegations of mortgage fraud lodged by Federal Housing Finance Agency Director Bill Pulte. Pulte previously claimed Cook made false statements on two separate mortgage applications.
“In light of your deceitful and potentially criminal conduct in a financial matter… I do not have… confidence in your integrity,” Trump wrote.
Cook, appointed by former President Joe Biden and the first Black woman to serve as a Fed governor, rejected the firing. Cook’s attorney, Abbe Lowell, called the firing “illegal” and “lacking any proper process, basis or legal authority.” Lowell vowed to take legal action to block the move.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said. “I will not resign.”
Under the Federal Reserve Act of 1913, a president can remove a Fed governor only “for cause,” a term that has historically referred to misconduct or neglect of duty. Cook has not been charged with any crime.
Trump’s firing comes amid his ongoing criticism of the Fed for not cutting interest rates. If the firing holds, Trump could gain a majority on the Fed board. He has already nominated Stephen Miran to a separate vacant seat and could name Cook’s replacement.
Cook, who joined the board in 2022, plans to continue her duties while the legal fight unfolds.
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