Trump said that Cook’s removal was „for cause,“ pointing to Pulte’s referral in his termination letter to Cook.
President Trump fired Federal Reserve Governor Lisa Cook on Monday following accusations of mortgage fraud. Her firing virtually ensures that Trump will appoint a successor who supports his push for deeper interest rate cuts, which the President believes should be done immediately to boost the economy.
The decision marks a sharp escalation of Trump’s effort to tighten his grip on an institution traditionally viewed as independent from routine political influence. Trump has been relentlessly pressuring Federal Reserve Chair Jerome Powell to cut the central bank’s short-term interest rates. Firing Cook opens the door for Trump to appoint a loyal MAGA supporter who could bolster his influence over the central bank.
Fired for Fraud
„Pursuant to my authority under Article Il of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately“, Trump wrote in a letter addressed to Cook, which he posted on Truth Social.
Cook’s firing follows allegations from Federal Housing Finance Agency Director Bill Pulte, who, in a criminal referral submitted to Attorney General Pam Bondi last week, accused the Fed board member of falsifying bank paperwork and property records to obtain more favorable loan conditions.
