US President Donald Trump has announced the immediate removal of Federal Reserve Governor Lisa Cook, a dramatic escalation in his confrontation with the central bank.
Trump claimed there was “sufficient reason” to believe Cook made false statements on mortgage agreements, citing constitutional powers he says allow him to dismiss her.
Cook rejected the move, saying the president has “no authority” to fire her and declaring she will not resign. Her lawyer, Abbe David Lowell, called it an “illegal action” and vowed to challenge it.
The unprecedented decision comes as Trump intensifies pressure on the Fed, especially Chair Jerome Powell, over its refusal to cut interest rates. Experts say the firing is almost certain to face legal tests, with the White House needing to prove “cause” in court.
In a statement, Cook said: “President Trump purported to fire me ‘for cause’ when no cause exists under the law. I will continue to carry out my duties to help the American economy.”
Trump made the announcement late Monday on Truth Social, posting a letter addressed to Cook informing her of her removal from the Fed’s board of governors, effective immediately.
The Federal Reserve has yet to comment. Cook, appointed in 2022, is one of seven Fed governors and the first African American woman to serve in the role.
