Nationwide — President Trump has fired Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. Cook, however, has refused to step down, arguing the president does not have the authority to remove her and vowing to continue in her role.
According to the New York Post, the dismissal was announced Monday in a letter Trump posted on Truth Social. He said the Federal Reserve Act allows him to remove board members “for cause” and pointed to a criminal referral accusing Cook of falsifying loan documents.
Cook pushed back, saying she would not resign. She joined the Fed board in 2022 after serving on Barack Obama’s Council of Economic Advisers and Joe Biden’s transition team.
The allegations were raised last week by Federal Housing Finance Agency Director Bill Pulte, who claimed Cook listed two properties as her “primary residence” to obtain better loan terms—first a Michigan home, then an Atlanta condo just weeks later. Pulte referred the case to Attorney General Pam Bondi.
To fight her removal, Cook hired attorney Abbe Lowell, who also represents Hunter Biden. Lowell pledged to challenge what he called Trump’s “illegal action.”
Trump had already called for Cook’s resignation in a post last week. He said Federal Reserve officials must uphold integrity and claimed her actions undermined trust in the institution.
Her removal leaves a third vacancy on the Fed board for Trump to fill. The president is preparing to nominate a new Fed chair and another governor, both of whom will have voting power on the key rate-setting committee.
Trump has frequently criticized the Federal Reserve, especially Chairman Jerome Powell, for refusing to cut interest rates. Powell’s term expires in May 2026, and the White House has been considering possible replacements.