Trump Fires Guv Lisa Cook In Major Federal Reserve Shake-Up, Accuses Her Of 'Mortgage Fraud'

Last Updated:August 26, 2025, 07:20 IST

Trump had earlier called on Cook to step down by August 20, but moved ahead with termination after she did not resign

Donald Trump and Lisa Cook | File Image

US President Donald Trump on Monday removed Federal Reserve Governor Lisa Cook, the first African-American woman to hold the position, accusing her of mortgage irregularities.

The dismissal followed accusations from William Pulte, head of the Federal Housing Finance Agency and a Trump appointee, who claimed Cook had improperly listed two separate mortgages as primary residences. The Justice Department said it is reviewing the matter.

Trump had earlier called on Cook to step down by August 20, but moved ahead with termination after she did not resign.

In a letter shared on his Truth Social platform, he wrote, “I have determined that there is sufficient cause to remove you from your position."

Trump said there was sufficient evidence that Federal Reserve Governor Lisa Cook had misrepresented details on her mortgage applications, arguing that her actions undermined her credibility as a regulator.

“At minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator," Trump wrote in his removal order.

Cook, however, pushed back against calls for her resignation.

Speaking on August 20, she said: “I have no intention of being bullied to step down from my position because of some questions raised in a tweet. 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, appointed to the Fed’s Board of Governors in 2022 by then-President Joe Biden, had taken out the mortgages in 2021 while working as an academic.

Her 2024 financial disclosure form lists three mortgages, two of which were marked as primary residences.

William Pulte, Director of the Federal Housing Finance Agency, has accused Cook of mortgage fraud, alleging she improperly claimed two mortgages as primary residences—loans that typically offer lower rates.

He has not provided public evidence to support the allegation but said in an August 21 interview with Bloomberg Television that the issue was “self-evident" from publicly available records.

He also insisted the findings emerged from routine oversight, not political targeting.

The controversy comes amid broader efforts by the Trump administration to roll back diversity, equity, and inclusion (DEI) programs across federal agencies, a push that has coincided with the ouster of several women and minority officials.

Critics note the administration has also pursued similar fraud-related accusations against other political opponents, including Senator Adam Schiff.

Trump’s move to remove Cook marks another escalation in his effort to influence the central bank’s leadership.

He has repeatedly pressed the Fed to cut interest rates more aggressively despite persistent inflation concerns.

Although Trump has threatened to fire Fed Chair Jerome Powell—who was first appointed by him and later renominated by Biden—he has stopped short of doing so, with Powell’s term set to expire in May next year.

Cook’s departure allows Trump to further shape the Fed’s top ranks.

He recently promoted Governor Michelle Bowman to oversee bank regulation and is said to be weighing Governor Christopher Waller, a Trump appointee from 2020, as a possible successor to Powell.

Ronit Singh

Ronit Singh, Senior Sub-Editor at News18.com, works with the India and Breaking News team. He has a keen focus on Indian politics and aims to cover unexplored angles. Ronit is an alumnus of Christ (Deemed to be...Read More

Ronit Singh, Senior Sub-Editor at News18.com, works with the India and Breaking News team. He has a keen focus on Indian politics and aims to cover unexplored angles. Ronit is an alumnus of Christ (Deemed to be...

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First Published:

August 26, 2025, 07:16 IST

News world Trump Fires Guv Lisa Cook In Major Federal Reserve Shake-Up, Accuses Her Of 'Mortgage Fraud'

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