Topline
President Donald Trump announced on Monday night that he was moving to fire Federal Reserve Governor Lisa Cook, citing allegations that she had committed mortgage fraud, marking a significant escalation in the president’s battle with the central bank’s leadership, who have so far resisted Trump’s demands to cut interest rates.
Lisa Cook questioned authority to fire her and said she would not voluntarily resign.
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Key Facts
In a post on his Truth Social Platform, Trump shared an official White House letter he sent to Cook telling her, “you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.”
In the letter, Trump claims the Federal Reserve Act allows him to remove governors at his discretion “for cause” and adds that he has “determined that there is sufficient cause to remove you from your position.”
The president’s letter cites allegations against Cook raised by Federal Housing Finance Agency Director Bill Pulte earlier this month that she had committed mortgage fraud by claiming two properties as her primary residence—an allegation the central bank official has denied.
Trump accuses Cook of “deceitful and potentially criminal conduct in a financial matter,” and writes that due to this, he does not have confidence in her integrity to stay on in the role.
How Has Lisa Cook Responded?
In a statement shared with several news outlets, Cook questioned the legality of Trump’s move and said: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Chief Critic
In a post on X, Sen. Elizabeth Warren, D-Mass., wrote: “Trump is desperately looking for a scapegoat to cover for his own failure to lower costs for Americans and firing Lisa Cook is his latest move. It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and any court that follows the law will overturn it.”
Source: https://www.forbes.com/sites/siladityaray/2025/08/26/trump-says-he-is-firing-fed-governor-lisa-cook-she-says-he-lacks-authority-to-do-so/