President Trump Threatens to Dismiss Federal Reserve Governor Lisa Cook Amid Mortgage Fraud Allegations
President Trump has threatened to fire Federal Reserve Governor Lisa Cook if she does not resign, following allegations of mortgage fraud. Cook denies the accusations and refuses to step down.
President Donald Trump has escalated his efforts to influence the Federal Reserve by threatening to dismiss Governor Lisa Cook if she does not resign, citing allegations of mortgage fraud.
The controversy centers on claims that Cook declared two properties in different states as her primary residences, potentially securing more favorable mortgage terms. These alleged infractions occurred before her appointment to the Federal Reserve Board in 2022.
Federal Housing Finance Agency Director William Pulte raised the allegations, which are currently under review by the Justice Department. Cook has denied any wrongdoing and stated she will not be "bullied" into resigning.
Legal experts note that a president can only remove a Federal Reserve governor "for cause," typically understood as misconduct or dereliction of duty. No president has previously attempted to dismiss a sitting governor, and such an action could lead to legal challenges.
This development occurs amid broader tensions regarding Federal Reserve governance, with President Trump also preparing to replace Chair Jerome Powell and advocating for the Senate confirmation of economist Stephen Miran to the board.
Source
The New York TimesFact-checking
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