President Donald Trump announced he was firing Federal Reserve Board Governor Lisa Cook on Monday night, but the top official hit back and insisted she’s not going anywhere.
Trump posted a termination letter on his Truth Social account addressed to Lisa Cook, who was confirmed by the Senate in 2022 as the first Black woman to serve as a Fed governor.
The letter included allegations that Cook had committed mortgage fraud and said she was being removed from her position “effective immediately.” Trump ally Bill Pulte, the head of the Federal Housing Finance Agency, referred Cook to the Justice Department for investigation last week.
The president’s letter claimed that due to the alleged improprieties, he had “sufficient cause to remove you from your position.” But Cook and her lawyer immediately questioned whether Trump has the power to terminate her at all.
Under the Federal Reserve Act, governors can only be removed from their jobs “for cause” or for some kind of wrongdoing, but Cook has not been charged with any crime, and no president has ever fired a governor before.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said in a statement to The New York Times.
She added, “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Cook has hired lawyer Abbe Lowell, who said in a statement that Trump’s “demands lack any proper process, basis or legal authority.”
“We will take whatever actions are needed to prevent his attempted illegal action,” Lowell added.
Trump had called for Cook’s resignation last week over allegations made by Pulte over her mortgage documents. Trump posted on Truth Social that Cook “must resign, now!!!”
Pulte claimed Cook had “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraudulent.” In a statement to the Daily Beast at the time, Cook said she had learned of the news through the media. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she said.
“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,” she added.
Trump’s letter stated that due to alleged “deceitful and potentially criminal conduct in a financial matter,” he had no confidence in her integrity.
Trump added: “At a 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.”
The Daily Beast has contacted the White House for comment.
In a statement to the Daily Beast, a spokesperson for the Federal Reserve said governors serve in long, fixed terms and may only be removed by the president “for cause.”
It continued, “The Federal Reserve will continue to carry out its duties as established by law. Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System. As always, the Federal Reserve will abide by any court decision.”
“The Federal Reserve reaffirms its commitment to transparency, accountability, and independence in the service of American families, communities, and businesses.”
Cook, who was nominated to the post by Joe Biden, is not due to finish her current term until 2038.
Sen. Elizabeth Warren, ranking member of the Senate Banking, Housing, and Urban Affairs Committee, attacked Trump in a statement on the issue.
“The illegal attempt to fire Lisa Cook is the latest example of a desperate President searching for a scapegoat to cover for his own failure to lower costs for Americans,” Warren said.
“It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.”
House Democratic Leader Hakeem Jeffries said in a statement, “Dr. Lisa Cook is the first Black woman ever to serve on the Federal Reserve Board of Governors. Donald Trump is trying to remove her without a shred of credible evidence that she has done anything wrong.”
Jeffries continued, “To the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House. The American people are not buying your phony projection and slander of a distinguished public servant.”
Meanwhile, House Judiciary Committee ranking member Jamie Raskin, a Maryland Democrat, told Axios, “What an outrage and a scandal. This is the big one constitutionally.”
Trump biographer Michael Wolff told the Daily Beast’s podcast Inside Trump’s Head that the president’s contempt for Cook was just one example of his bias against Black women.
“I spent the last two years, more than two years, deeply involved with Trump’s campaign,” Wolff said. “One of the motifs that was pervasive in the campaign was Trump’s attitude toward Black women.”
