Trump Threatens to Fire Fed Governor Lisa Cook Over Fraud Claims

President Donald Trump has made a startling announcement, stating that he will dismiss Federal Reserve Governor Lisa Cook if she does not resign amid serious fraud allegations. Cook, appointed by former President Joe Biden, is under scrutiny due to claims from Bill Pulte, the director of the Federal Housing Finance Agency, suggesting that she engaged in mortgage fraud. These accusations have escalated to the point where Pulte has requested a criminal investigation, significantly jeopardizing Cook’s position within the Federal Reserve.

During a media interaction, Trump expressed severe disapproval of Cook’s actions, remarking, “What she did was bad.” He insists that if Cook chooses to remain in her role, he will take decisive action to terminate her. This threat is not merely a personal attack; it represents a strategic move by Trump to reshape the Federal Reserve’s governing board, which could have long-lasting implications for monetary policy.

If Trump succeeds in removing Cook “for cause,” he would have the opportunity to appoint a replacement who aligns more closely with his economic perspective. This could serve to consolidate Trump’s influence over the central bank, especially as several seats are currently vacant, including those occupied by appointees who have shown dissent on monetary policy decisions.

The allegations against Cook, particularly claims of dual-residence mortgage fraud, are being taken seriously, with the Department of Justice now investigating the matter. Pulte, who has openly criticized Fed Chairman Jerome Powell, has aggressively engaged on social media to bolster his allegations against Cook, which further complicates her situation. Meanwhile, Cook has responded defiantly, stating that she will not be intimidated into resigning and is committed to addressing any legitimate inquiries regarding her financial history.

This incident unfolds against a backdrop of rising economic concerns, as Fed Chairman Powell has begun hinting at potential interest rate cuts due to waning growth and persistent inflation risks exacerbated by Trump’s tariffs. The potential ousting of Cook, coupled with ongoing criticism of the Federal Reserve, reflects a broader effort by Trump to exert control over U.S. monetary policy, raising alarms about the integrity and independence of the central bank.

(h/t: https://www.cnbc.com/2025/08/22/trump-fire-fed-lisa-cook-powell.html)