Cook stands firm amid Trump's attack on bank’s independence

In an unprecedented move, US President Donald Trump said that he’ firing Federal Reserve Governor Lisa Cook — marking a sharp escalation in his efforts to exert greater control on one of the most powerful financial institutions in the world. Matt Brown of the Associated Press reports

- Matt Brown of the Associated Press reports

US PRESIDENT Donald Trump’s vow to fire Lisa Cook, an economist who is the first black woman to serve on the Federal Reserve's board of governors, kicked off another tense debate and likely legal battle over a major institution's independence.

It also marks another potential high-profile ousting of a black leader from the federal government amid Trump's broader crusade against diversity and inclusion policies.

Trump's order to fire Cook aligns with the White House's effort to expand its power across once ostensibly independent parts of the federal government and broader American economy and society. The move would also remove a longtime advocate for diverse and equitable policy-making from leadership.

On Monday, Trump said he fired Cook after the director of a housing regulatory agency alleged Cook committed mortgage fraud. Cook dismisses the firing as legally unfounded.

“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,’ Cook said in a statement.

“I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”

White House spokesman Kush Desai said Cook “was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions” and that her removal “improves the Federal Reserve Board's accountability and credibility for both the markets and American people”

Trump's move drew immediate backlash from black lawmakers. House Minority Leader Hakeem Jeffries said: “Dr Lisa Cook is the first black woman ever to serve on the Federal Reserve Board of Governors. Donald Trump is trying to remove her without a shred of credible evidence that she has done anything wrong”

‘The National Urban League, a civil rights group, called Trump's move a “witch hunt” and condemned the president's comments about Cook as “character assassination”.