President Donald Trump is removing Federal Reserve Governor Lisa Cook effective immediately, according to a letter he posted to Truth Social on Monday night.
In the letter, Trump writes: “Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.”
Trump cites a “criminal referral” from Federal Housing Finance Agency Director William Pulte from August 15. In that referral, Pulte accused Cook of mortgage fraud.
The Federal Reserve did not immediately respond to a request for comment.
For her part, Cook said in a statement last week that she had “no intention of being bullied to step down from my position because of some questions raised in a tweet.”
Cook said she learned of Pulte’s allegations only from media reports. “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts,” Cook said.
Cook is the first Black woman to serve on the board of the Fed, considered the world’s most important independent central bank.
Under the Federal Reserve Act, the only reason that a Federal Reserve governor can be removed from their position is “for cause,” or some kind of wrongdoing.
The Supreme Court in May said, while granting Trump the ability to remove members of other independent agencies, that the Federal Reserve is a “uniquely structured, quasi-private entity” that has its own distinct historical tradition. That led many to believe that the bar would be high for Trump to be able to remove any Fed board members, or its chairman.
Monday’s move against Cook came amid an unrelenting pressure campaign by Trump against the central bank, with the president and his top aides and allies repeatedly attacking the institution and its chair, Jerome Powell, over current interest rate policies.
That changed when Pulte alleged that Cook committed mortgage fraud. Trump quickly reposted Pulte’s allegations, saying she “must resign, now!!!”
Pulte took to social media after Trump announced Cook’s removal, saying on X that “Fraud will not be tolerated in President Trump’s housing market.”
The U.S. Dollar Index, a measure of the dollar’s strength against a basket of global currencies, sharply declined on Trump’s announcement.
Cook has a permanent vote on the central bank’s rate-setting committee and was appointed by President Joe Biden to a term running until 2038.
If Cook is removed from the Fed’s board and its rate-setting committee, Trump would gain another opportunity to put his mark on the central bank.
Trump has nominated his top economist Stephen Miran to the Fed’s board for a term that would run until January. Trump will also have a chance to name a new chair when Powell’s term ends in May.
This is a developing story. Please check back for updates.
