Donald Trump sent a letter to Federal Reserve Governor Lisa Cook on Monday announcing her immediate removal over mortgage fraud allegations. The president accused her of falsely declaring properties in both Michigan and Georgia as primary residences to obtain mortgage benefits, marking an unprecedented attack on the central bank's independence.
Cook responded defiantly through her lawyer, stating she will not resign and plans to continue her duties. She said: "No cause exists under the law, and he has no authority to remove me from the job."
Democratic lawmakers furiously condemned the move as an authoritarian overreach. Senator Elizabeth Warren called it "the latest example of a desperate president searching for a scapegoat" and "an authoritarian power grab that blatantly violates the Federal Reserve Act."
Legal Battle Intensifies
Cook's lawyer Abbe Lowell said Trump's "demands lacked any proper process, basis or legal authority." He vowed to "take whatever actions are needed to prevent his attempted illegal action," setting up a potential court battle over presidential authority.
According to reports, this represents the first time in the Federal Reserve's 111-year history that a president has attempted to fire a Fed governor. The move escalates Trump's broader campaign to assert control over the traditionally independent central bank.
Constitutional Crisis Emerges
Representative Maxine Waters accused Trump of "cobbling together" allegations as a pretext to replace Cook with someone "loyal first to Trump instead of the US Constitution." Waters highlighted that Cook is the first Black woman to serve on the Federal Reserve's Board of Governors since Congress created it in 1913.
Only The Independent reports that the allegations stem from a criminal referral by William Pulte to Attorney General Pam Bondi dated August 15, providing the specific legal framework Trump cited. Cook was appointed to her position by Joe Biden in 2022 and her term was set to continue until 2030.
Sources used: "The Guardian", "Mirror", "Express", "The Independent"
Note: This article has been edited with the help of Artificial Intelligence.
