Above: Lisa Cook
President Trump has announced his firing of Federal Reserve Governor Lisa Cook following mortgage fraud allegations, but Cook so far refuses to go.
Trump posted a letter addressed to Cook firing her from her position at the Fed on Truth Social Monday night.
In the letter, he claims that through the Federal Reserve Act of 1913 (12 U.S. Code § 242) he has “for cause” to remove Cook, with the cause being the recent criminal referral letter from Federal Housing Finance Agency (FHFA) Director Bill Pulte on Cook.
The letter to Attorney General Pam Bondi alleges Cook participated in mortgage fraud by “(falsifying) residence statuses” in order to receive lower mortgage rates and better loan terms for her properties in Ann Arbor, Michigan, and Atlanta, Georgia. She had listed both properties as her primary residences for almost simultaneous mortgage applications, and one of the properties was allegedly added to the rental market.
Trump stated in the letter that as a member of the Fed, the American people “must be able to have full confidence in the honesty of the members.”
“In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity,” he continued.
He added that the alleged mortgage fraud calls into question Cook’s “competence and trustworthiness as a financial regulator.”
Cook said in a statement shared with the New York Times and other media outlets that she “will not resign,” and plans to carry out the remainder of her term to January 2038.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she continued. “I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
The firing comes at a precarious moment, as the Fed appears ready to begin cutting rates, as Trump has demanded, but with plenty of uncertainty beyond the central bank’s next meeting in September. Housing economists continue to note that rate cuts could help boost an ailing housing market, while also expressing concerns about tariff impacts that the Fed has cited as reason to keep rates higher.
If Trump is able to replace Cook, he would be able to exert more control over the bank leading up to the end of chair Jerome Powell’s term in May of 2026.
Cook’s lawyer Abbe David Lowell added that Trump’s “reflex to bully is flawed and his demands lack any proper process, basis or legal authority.”
“We will take whatever actions are needed to prevent his attempted illegal action,” she continued.
