Trump says he’s firing Federal Reserve Governor Lisa Cook

President Donald Trump on Monday said he is firing Federal Reserve Governor Lisa Cook, escalating his pressure campaign on the Central Bank to lower interest rates.

In a social media post, Trump shared a letter addressed to Cook asserting the Department of Justice’s inquiry into whether Cook lied on mortgage applications amounted to “sufficient cause” to remove her from the fed board.

Cook was nominated to her role by President Joe Biden and confirmed by the Senate in 2022. She was previously was a professor of economics and international relations at Michigan State University and served on the board of directors of the Federal Reserve Bank of Chicago.

“The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve,” Trump said in the letter. “In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”

Trump has repeatedly sought to influence the Federal Reserve to lower interest rates and has previously suggested removing Federal Reserve Chair Jerome Powell.

Federal Housing Finance Agency Director Bill Pulte filed a criminal referral to the Department of Justice this month alleging that Cook claimed two homes as her primary residence — one of a number of mortgage fraud investigations he has launched against the president’s political targets, including New York Attorney General Letitia James and California Sen. Adam Schiff.

“Thank you President Trump for your commitment to stopping mortgage fraud and following the law,” Pulte said in a social media post. “If you commit mortgage fraud in America, we will come after you, no matter who you are.”

GOP Wyoming Sen. Cynthia Lummis also offered her support for Trump’s move, saying “Trump’s decision to terminate Lisa Cook means the days of the Federal Reserve Board members acting like they are above the law are over.”

The Federal Reserve had no immediate comment and Cook did not immediately respond to requests for comment.

The Supreme Court has repeatedly backed Trump’s efforts to remove executive branch officials that Congress had attempted to shield from removal without cause — including from agencies that have historically enjoyed arms-length independence. But the justices have made clear they view the Fed as an exception to this deference to the president.

In a May opinion upholding Trump’s removal of a member of the National Labor Relations Board, the high court emphasized that the Federal Reserve “is a uniquely structured, quasi-private entity that follows in the historical tradition of the First and Second Banks of the United States.”

Trump’s effort to remove Cook, however, will likely hinge on what he is claiming as the basis. The allegation of mortgage fraud has not as yet led to criminal charges or any findings of misconduct.

In his letter, Trump sought to justify his legal standing in removing Cook, citing his executive authority.

“The executive power of the United States is vested in me as President and, as President, I have a solemn duty to ensure that the laws of the United States are faithfully executed,” he wrote. “I have determined that faithfully executing the law requires your immediate removal from office.”

Trump’s action drew bipartisan criticism, including from former Treasury Secretary Larry Summers.

“Based on what I’ve read and heard, this is a problematic politicization of the of the Federal Reserve. There has been no kind of independent, comprehensive review with the accused being given an opportunity to present her version of the facts. There’s not a convincing case that this undercuts her ability to function as a Fed governor,” Summers told POLITICO. “The accusation — even taken at face value — alleges conduct that I suspect large numbers of people, including in Washington, have done.”

Senate Banking Committee Ranking Member Elizabeth Warren called on the courts to overrule Cook’s firing.

“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 in a statement. “It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.”