From CNBC: President Donald Trump on Monday fired Federal Reserve Governor Lisa Cook, an unprecedented and significant escalation of his attacks on the U.S. central bank’s independence over its refusal to cut interest rates quickly.
Trump, in a termination letter to Cook posted on Truth Social, cited allegations that she had made false statements on applications for home mortgages.
“In light of your deceitful and potentially criminal conduct in a financial matter, [the American people] cannot and I do not have such confidence in your integrity,” Trump wrote to Cook, who is the first Black woman to serve as a governor of the Federal Reserve
“At a minimum, the conduct that issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
Trump’s removal of Cook could be challenged in federal courts and eventually at the Supreme Court.
“I have determined that faithfully executing the law requires your immediate removal from office,” Trump wrote to Cook.
The letter states that Cook’s termination is effective “immediately.”
Below is a copy of the letter to Cook.
🚨 President Donald J. Trump relieves Federal Reserve Governor Lisa Cook of her position pic.twitter.com/tJV8m4mlHW
— Rapid Response 47 (@RapidResponse47) August 26, 2025
READ MORE from CNBC.
President Donald Trump on Monday fired Federal Reserve Governor Lisa Cook, according to a letter on his Truth Social, an unprecedented move and a significant escalation of his attacks on the U.S. central bank. https://t.co/U0lFgcfOd7 pic.twitter.com/kkgRSIxjEv
— CNBC (@CNBC) August 26, 2025
Trump had warned last week that he would fire Cook if she didn’t resign, after the news broke that she is under investigation by the Justice Department over allegations of mortgage fraud.
Fox Business explained:
Under federal law governing the Federal Reserve system, the president can only remove a sitting governor for cause, which has historically been interpreted as applying to malfeasance or misconduct, rather than policy disagreements.
The president’s action to remove Cook from her role marks the first time in history that a president has attempted to remove a sitting Federal Reserve governor, and it could lead to a legal battle.
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