Trump's Controversial Demand to Dismiss Fed Governor Lisa Cook Amid Fraud Allegations

Sun Sep 14 2025 02:57:43 GMT+0300 (Eastern European Summer Time)

As President Trump continues his battle with the Federal Reserve, he has demanded the removal of Governor Lisa Cook, citing mortgage fraud allegations. This politically charged move has sparked outrage and raised questions about presidential powers over the central bank.

President Trump has called for the dismissal of Federal Reserve Governor Lisa Cook over allegations of mortgage fraud. This request not only deepens the tension between Trump and the Federal Reserve but also ignites a debate on the extent of presidential power regarding federal officials. Cook maintains her innocence and vows to fight the dismissal, while legal experts weigh in on the legitimacy of Trump's claims.

Trump's Controversial Demand to Dismiss Fed Governor Lisa Cook Amid Fraud Allegations

As President Trump continues his battle with the Federal Reserve, he has demanded the removal of Governor Lisa Cook, citing mortgage fraud allegations. This politically charged move has sparked outrage and raised questions about presidential powers over the central bank.

President Donald Trump has demanded the removal of one of the governors of the US central bank, a move that escalates his long-running feud with the institution. Late on Monday, he posted on his Truth Social account a letter addressed to Lisa Cook, saying she was being removed from the Federal Reserve Board of Governors due to mortgage fraud allegations.

The move has caused an outcry from Democrats who say it amounts to unprecedented political interference. Ms Cook was appointed as governor of the Federal Reserve in 2022 by Democratic President Joe Biden, becoming the first African American to serve in the role. Her term was due to end in 2038. She previously served on Barack Obama’s Council of Economic Advisers and worked at the US Treasury.

Trump cited allegations that Ms Cook may have falsified records to obtain a mortgage, claiming she signed two documents attesting that two homes in different states were both her primary residence. CNN has obtained and reviewed the mortgage documents in question and found that she did claim two primary residences, but the specifics of her communication with lenders remain unclear.

While Ms Cook has not been charged with any wrongdoing, she stated her intention to challenge what she believes is an unjust dismissal. Legal experts have expressed skepticism about Trump's justification for firing her. The Federal Reserve Act does not provide for the president to remove a Fed official at will but allows for termination for cause, a definition that could lead to significant legal disputes.

Market reactions to Trump's demand have been relatively subdued as investors await the developments on whether the expected dismissal will occur. Meanwhile, Trump's insistence on lower interest rates continues to be a theme in his second term, as he argues that reducing borrowing costs is crucial for economic growth and US exporters.