D. Trump “fired” Federal Reserve governor Lisa Cook in a letter posted on Truth Social, accusing her of submitting false documents in mortgage applications. Specifically, he alleged that she had listed an apartment in Atlanta as her primary residence after taking out a loan for her home in Michigan, which she had also declared as her primary residence. [1], [2], [3]
L. Cook, the first Black woman on the Fed’s Board of Governors, had been appointed by former president J. Biden in 2022 and had resisted D. Trump’s pressure to cut interest rates.
The Fed is the central bank of the United States, responsible for shaping monetary policy, supervising banks, and intervening during crises to support the economy.
L. Cook stated that D. Trump does not have the authority to dismiss her, while, according to the “Financial Times”, the president’s move amounts to an attack on the independence of the Fed.
Although no president has ever removed a member of the Fed’s Board of Governors, the law allows dismissal “for cause”, such as inefficiency, neglect of duty, or abuse of authority in the performance of office.
The removal of L. Cook from the Fed would give D. Trump the opportunity to appoint someone of his choosing who would support lowering interest rates.
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