The Trump administration has intensified its calls for the removal of Federal Reserve Governor Lisa Cook after she stated she would not resign under pressure. Cook, appointed by President Joe Biden, faces unverified allegations of committing mortgage fraud.
These accusations have been made by officials from Donald Trump’s team amidst ongoing tensions regarding the independence of the Federal Reserve, particularly concerning interest rate decisions. In a departure from traditionally neutral interactions, Trump has requested cuts to interest rates and has urged the Fed’s Chair, Jerome Powell, to resign. Following these events, Trump called for Cook’s resignation.
Reports indicate that the Department of Justice is investigating the allegations against Cook, with a Trump official reportedly communicating to Powell that the matter “requires further examination.” The official formally requested Cook’s removal by stating that her continued service during this investigation could be seen as inappropriate.
Despite this pressure, it should be noted that the Federal Reserve Chair does not possess the authority to unilaterally remove a board member under the Federal Reserve Act. Additionally, there have been reports that Trump discussed options for terminating Cook for cause.
In response to the allegations, Cook affirmed her commitment to address concerns regarding her financial history thoroughly. She clarified her intentions regarding two mortgage agreements made in 2021, which included properties in Michigan and Georgia designated as her primary residences.
These developments are part of a broader narrative where Trump officials have levied similar accusations against various political opponents, including New York Attorney General Letitia James and Senator Adam Schiff, both of whom have dismissed the claims as baseless. The Justice Department is reportedly examining these related allegations as well.
Source: https://www.theguardian.com/business/2025/aug/21/trump-federal-reserve-governor-lisa-cook