Trump's Demand for Fed Governor's Removal: Who is Lisa Cook?

Sat Sep 13 2025 18:03:09 GMT+0300 (Eastern European Summer Time)

In a bold political move, President Trump has called for the dismissal of Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, stirring controversy in US politics.

President Donald Trump has announced the removal of Federal Reserve Governor Lisa Cook, claiming mortgage fraud allegations. This decision has ignited a political storm, with many Democrats crying foul over what they perceive as inappropriate interference with the central bank. Cook, the first African American woman to hold a Fed board position, is fighting back, stating she will contest her dismissal, which she believes was unjustified.

Trump's Demand for Fed Governor's Removal: Who is Lisa Cook?

In a bold political move, President Donald Trump has demanded the removal of Federal Reserve Governor Lisa Cook due to allegations of mortgage fraud. Late on Monday, Trump made the announcement via his Truth Social account, escalating his long-running feud with the US central bank.

Trump's letter to Cook, which outlined the charges, has sparked outrage among Democrats, who claim this action constitutes unprecedented political meddling.

Who is Lisa Cook and what does she do?

Lisa Cook was appointed as a governor of the Federal Reserve in 2022 by President Biden, marking a historic moment as she became the first African American to serve in this capacity. Previously, she served on Barack Obama’s Council of Economic Advisers and held positions in the US Treasury.

Cook plays a key role in formulating monetary policy, influencing major decisions such as the setting of interest rates, which are vital in maintaining economic stability.

What has Trump accused Lisa Cook of?

In his Truth Social post, Trump highlighted allegations that Cook may have falsified mortgage documents to claim two primary residences simultaneously. He criticized her for supposedly being aware of her commitments yet signing documents that contradict each other.

Despite these allegations, Cook has not been formally charged with any wrongdoing and maintains her commitment to contest her firing, asserting that Trump lacked just cause for such an action.

What does the Fed do?

The Federal Reserve serves as the central bank of the US, overseeing monetary policy, ensuring financial stability, and regulating financial institutions. One of its primary roles is to manage interest rates, significantly affecting economic conditions across the nation.

Can Trump actually fire her?

The legality surrounding Trump's ability to dismiss Cook could lead to a complex legal battle, as the Federal Reserve Act limits presidential removal powers to instances of malfeasance. Trump has cited a criminal referral as justification for his action; however, legal experts express skepticism regarding the validity of this claim.

Why does Trump want lower interest rates?

Throughout his second presidency, Trump has exerted pressure on the Fed to lower interest rates to stimulate economic growth and enhance borrowing conditions personal consumers and businesses. As the target range for interest rates remains at 4.25 to 4.5%, the pressure for adjustment continues.

This situation remains fluid, and market watchers are closely monitoring potential developments regarding Trump's demand for Cook's removal and its implications for the Fed's governance.