The Controversy Surrounding Federal Reserve Governor Lisa Cook

Sun Sep 14 2025 01:07:57 GMT+0300 (Eastern European Summer Time)

As President Trump calls for her dismissal from the Federal Reserve Board over mortgage fraud allegations, we delve into the implications and Cook's significant role in the central bank.

President Trump has demanded the dismissal of Lisa Cook from the Federal Reserve Board due to alleged mortgage fraud, raising concerns about political interference. Cook, appointed by President Biden, is the first African American governor of the Fed. While Trump cites allegations of false documentation, Cook defends her position, arguing there is no substantial cause for her removal.

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. There are seven governors on the board of the Fed and they play a key role in setting the monetary policy of the US.

Ms Cook has not been charged with any wrongdoing and in statement said she would fight her dismissal because Trump did not have just cause to fire her.