Trump fires Federal Reserve governor Lisa Cook over mortgage allegations

U.S. President Donald Trump announced that he has fired Federal Reserve Governor Lisa Cook, saying she made false statements on mortgage applications for homes in Michigan and Georgia.

In a letter posted on his Truth Social account, Trump accused Cook of “deceitful and criminal conduct in a financial matter” and said he had “sufficient cause” to remove her from the Fed’s Board of Governors.

Cook, who was appointed in 2022 by former President Joe Biden and is the first African American woman to serve on the Fed board, strongly rejected the allegations and declared she would not resign.

She insisted Trump has no legal authority to dismiss her, setting up what could become an unprecedented clash over presidential power and the independence of the U.S. central bank.

Legal experts note that while the Federal Reserve Act allows removal “for cause,” no president has ever tried to fire a sitting Fed governor. The dispute comes as Trump increases pressure on the Fed to slash interest rates, while Chair Jerome Powell has resisted political interference.