Donald Trump Moves To Fire Fed Governor Lisa Cook, Escalating Central Bank Attack

Trump said it was “inconceivable” that Cook was not aware of requirements in two separate mortgage applications taken out in the same year requiring her to maintain each property as her primary residence.“At minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your experience and trustworthiness as a financial regulator,” Trump wrote.

The Fed declined to comment. Cook didn’t immediately respond to a request for comment.

The Bloomberg Dollar Index, 2-year Treasury yield and S&P 500 futures fell after the announcement. The 10-year Treasury yield edged up.

It wasn’t immediately clear whether Cook intended to challenge the dismissal in the courts. If she challenges the firing, Cook could immediately seek an injunction reinstating her while litigation moves forward.

Cook said Aug. 20, after Pulte initially called on US Attorney General Pam Bondi to investigate, that she had “no intention of being bullied to step down from my position because of some questions raised in a tweet.” She added that she did “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.”

The announcement comes after the US Department of Justice indicated it planned to investigate Cook, following a criminal referral from Federal Housing Finance Agency Director Bill Pulte alleging that she may have committed mortgage fraud. That investigation marked the latest in a series of moves by the Trump administration both to increase legal scrutiny of Democratic figures and put pressure on the central bank.

Pulte, in a statement posted to social media, thanked Trump for removing Cook. “If you commit mortgage fraud in America, we will come after you, no matter who you are,” he wrote.

Trump and the White House have been relentless in their attacks on the Fed this year, arguing high interest rates have added to the government’s financing costs and damaged the housing market. Fed officials have brushed off the pressure, holding their benchmark rate steady so far in 2025 amid concerns that tariffs and other policies will fuel inflation, though on Friday Fed Chair Jerome Powell signaled policymakers may cut rates when they meet in September due to rising risks to the labor market.

Forcing Cook out would give Trump an opportunity to secure a four-person majority on the seven-member board after another Biden appointee, Adriana Kugler, announced on Aug. 1 she would vacate her position early. Kugler’s term was set to expire in January.

Cook became the first Black woman to serve on the Fed’s Board of Governors in Washington when she was appointed by President Joe Biden in 2022. Her term was not set to expire until 2038.