President Donald Trump has announced the immediate removal of Federal Reserve Governor Lisa Cook, as stated in a letter he shared on Truth Social on Monday night.
In his letter, Trump asserted, “Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.”
The president referenced a “criminal referral” made by Federal Housing Finance Agency Director William Pulte on August 15, in which Pulte accused Cook of mortgage fraud. The Federal Reserve has not yet responded to inquiries regarding the matter.
In response to the allegations, Cook stated last week that she would not resign under pressure. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she remarked. Cook noted that she had only been made aware of Pulte’s claims through media coverage, adding, “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”
Notably, Cook is the first Black woman to serve on the Federal Reserve’s board, the leading independent central bank globally. Under the Federal Reserve Act, governors can only be removed for “cause,” indicating some form of wrongdoing.
In May, the Supreme Court allowed Trump to remove members from other independent agencies, but characterized the Federal Reserve as a “uniquely structured, quasi-private entity” with its own historical precedents. This led to speculation that any removals would need to meet a considerable threshold of justification.
Trump’s dismissal of Cook coincided with ongoing pressure he has exerted on the central bank, aimed at both the institution and its chair, Jerome Powell, particularly regarding current interest rate policies. Following Pulte’s allegations, Trump quickly reiterated his call for Cook to resign, declaring she “must resign, now!!!”
Pulte later expressed on social media that “Fraud will not be tolerated in President Trump’s housing market” after Cook’s removal was confirmed. The U.S. Dollar Index, which gauges the dollar’s strength against a selection of international currencies, experienced a noticeable drop following Trump’s announcement.
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Cook holds a permanent vote on the Federal Reserve’s rate-setting committee and was appointed by President Joe Biden for a term extending until 2038. Should Cook be removed, it would provide Trump an additional opportunity to influence the Federal Reserve, as he has already nominated his chief economist, Stephen Miran, for a board position with a term lasting until January. Trump will also have the chance to appoint a new chair when Powell’s term concludes in May.
