President Donald Trump fired Federal Reserve governor Lisa Cook Monday evening effective immediately, intensifying a pressure campaign on the independent Fed as he seeks to sway its decisions on interest rates and other economic policy.
In a letter posted on social media, President Trump removed Cook from her position in connection with allegations of mortgage fraud. The White House claims Cook committed fraud in 2021 when she purchased two properties.
In the letter, President Trump writes "The Federal Reserve Act provides that you may be removed, at my discretion, for cause. See 12 U.S.C. § 242. I have determined that there is sufficient cause to remove you from your position."
“The executive power of the United States is vested to me as President and, as President, I have a solemn duty that the laws of the United States are faithfully enacted," President Trump wrote. "I have determined that faithfully enacting the law requires your immediate removal from office.”
Cook has not been legally charged with any such fraud offense. She said at the time the allegations surfaced that she would not be "bullied" into resignation.
Sen. Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, said in a statement Monday “The illegal attempt to fire Lisa Cook is the latest example of a desperate President searching for a scapegoat to cover for his own failure to lower costs for Americans. It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.”
Scripps News has reached out to the Federal Reserve for comment.
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The news of Cook's ouster comes as President Trump has maintained heavy pressure on the independent Federal Reserve and its Chairman Jerome Powell to lower interest rates.
The president has at times insulted Powell and threatened to remove him from his position. This month President Trump called Powell a "stubborn MORON" on social media and urged the rest of the Fed's Board of Governors to exert more control over Fed decisions.
President Trump has separately nominated Stephen Miran, an economist from within his administration, to replace former Federal Reserve governor Adriana Kugler. Krugler stepped down in August. Miran's appointment is subject to congressional approval.
At its most recent meeting, the Federal Reserve left the federal funds rate unchanged at a range of 4.25% to 4.50%, where it has remained since December 2024.
This is a breaking news story and will be updated.
