President Donald Trump announced the dismissal of Federal Reserve Governor Lisa Cook, citing a complaint alleging she declared two primary residences to obtain favorable mortgage terms. Cook’s legal team says no lawful cause exists for removal and Cook refused to resign, pledging to continue her duties. Cook was appointed by President Joe Biden and her term was not scheduled to expire until 2038; she is the first African American woman to serve as a Fed governor. The removal attempt could give the president leverage over monetary policy and risk market repercussions while raising questions about Fed independence.
In the dismissal letter, which Trump published on his social network, Truth, the president, who maintains that the dismissal is justified, refers to the complaint filed by a senior Housing Department official and staunch Trump supporter, Bill Pulte, who claimed that Cook had declared two homes in two different states as her primary residence in order to apply for mortgages on both on favorable terms.
You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately, reads the letter, bearing the White House letterhead and the presidential signature. Trump also states that the Federal Reserve has an enormous responsibility in setting interest rates and regulating reserve and member banks. Therefore, the letter continues, the American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the
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