Trump Dismisses Federal Reserve Governor Lisa Cook Amid Controversy
Donald Trump has said he will immediately remove Federal Reserve official Lisa Cook from her position, a major escalation in his battle against the US central bank.
In an announcement made on his social media platform Truth Social, Trump posted a letter addressed to Cook in which he informed her of his decision to remove her from the bank's board of governors with immediate effect.
He stated there was sufficient reason to believe she had made false statements on mortgage agreements, and cited constitutional powers which he claimed allowed him to remove her.
Neither Cook nor the Federal Reserve has commented on the sacking, which the president announced late on Monday.
Trump has been putting increasing pressure on the Fed, especially its chair Jerome Powell, in recent weeks, asserting that the central bank has been unwilling to lower interest rates. He has repeatedly suggested the possibility of firing Powell as well.
The decision to fire Cook, who is one of seven members of the Fed's board of governors and the first African American woman to serve in the role, is believed to be unprecedented in the central bank's 111-year history. It also raises legal questions, with experts suggesting the White House will need to demonstrate sufficient reason to fire her, potentially leading to court proceedings.
In his letter to Cook, Trump noted discrepancies in documents she signed regarding her primary residence, stating, It is inconceivable that you were not aware of your first commitment when making the second.
Cook had previously responded to allegations of mortgage fraud and stated her commitment to addressing any legitimate questions regarding her financial history. If Cook or the Fed resist Trump's decision, it could trigger a confrontation between the central bank and the White House, potentially undermining the Fed's independence established in 1951.
The impact of Trump's actions is already being felt in financial markets, with the US dollar weakening as investors speculate that Cook's replacement may favor increased interest rate cuts.
