Trump Says He's Ousting Lisa Cook as a Governor of the Federal Reserve

Cook says president has 'no authority' to fire her and that she will not resign

- Matt Grossman & Alex Leary

President Trump said he is removing Lisa Cook, a Joe Biden-appointed Federal Reserve governor, citing allegations that Cook submitted fraudulent information on mortgage applications.

"I have determined that there is sufficient cause to remove you from your position," Trump wrote in a letter to Cook posted on social media on Monday night.

Trump's decision comes days after Bill Pulte, the leader of the Federal Housing Finance Agency, alleged that in 2021 Cook sought mortgages on two properties—one in Michigan, the other in Atlanta—and described both of them as her primary residence in papers submitted 14 days apart. Pulte said he would submit the information to the Justice Department in a criminal referral.

Trump said last week that he would fire Cook, the first Black woman to serve on the Fed's board, if she didn't resign, though it is legally unclear whether the president possesses such power.

"President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so," said Cook in a statement late Monday. "I will not resign."

Abbe Lowell, a lawyer for Cook, said Trump's move "is flawed and his demands lack any proper process, basis or legal authority. We will take whatever actions are needed to prevent his attempted illegal action."

The Fed didn't immediately comment.

Trump's Monday letter referenced the "tremendous responsibility" the Fed has for setting interest rates and regulating reserve and member banks.

He added, "The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve."