President Donald Trump ordered immediate removal of Federal Reserve Governor Lisa Cook, citing unproven allegations of mortgage fraud and asserting lack of confidence in her integrity. The removal letter invoked presidential powers under the US Constitution and the 1913 Federal Reserve Act. The president cited claims by the federal mortgage regulator alleging false statements on one or more mortgage agreements and referenced an FHFA letter alleging Cook listed two properties as primary addresses. The letter emphasized the Federal Reserve's responsibility for setting interest rates and urged public confidence in its members. The action is expected to raise questions about central bank independence and political pressure on monetary policy.
Citing allegations made last week by the US federal mortgage regulator, Trump said there was sufficient reason to believe you may have made false statements on one or more mortgage agreements. The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and members banks, Trump said in the letter, which was shared on his platform Truth Social.
The extraordinary move is set to raise further questions about the independence of the US central bank, which has been under intense pressure from Trump to lower interest rates. In a letter to addressed to US Attorney General Pam Bondi and Department of Justice official Ed Martin earlier this month, Federal Housing Finance Agency Director Bill Pulte, a staunch Trump ally, alleged that Cook listed two properties as her primary home addresses.
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