Federal Reserve governor Lisa Cook has rejected Donald Trump’s attempt to remove her from the US central bank and vowed to fight what she calls an unjustified dismissal.
Cook issued a statement after Trump announced on his Truth Social platform that he had “terminated” her appointment over mortgage fraud allegations. She insisted there was “no legal basis” for the move and confirmed she would challenge it.
“I will not step aside, because there is no cause to remove me,” she said, signalling the start of what could become a landmark legal battle over the independence of the Federal Reserve.
Trump’s announcement came late on Monday, when he posted a letter accusing Cook of signing mortgage documents for two different properties, each declared as her primary residence within weeks of each other.
CNN reviewed the paperwork and confirmed the claims, but Cook has not been charged with any crime and there is no sign of an active investigation. Trump cited a “criminal referral” from a housing regulator as justification for his decision.
Cook, who was appointed by Joe Biden in 2022, made history as the first African American woman to serve as a Fed governor. Her term is meant to run until 2038. She previously served in the Obama administration and worked at the US Treasury.
The legality of Trump’s move is contested. Under the Federal Reserve Act, governors can only be removed “for cause,” a term that has never been tested in this way. Legal experts say it is unclear whether the allegations against Cook meet that threshold, particularly without charges or proven misconduct.
The dispute comes against the backdrop of Trump’s ongoing clash with the Fed. The president has repeatedly pushed for interest rate cuts, while the central bank under Jerome Powell has so far kept rates steady at 4.25–4.5%.
Markets have reacted cautiously, with investors appearing to doubt whether Trump’s attempt will succeed. But the row highlights the intense pressure facing the Federal Reserve as it tries to maintain independence from political interference.
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