President Donald Trump has made good on a previous threat to remove a top federal official over allegations of criminal activity.
Trump informed Federal Reserve Governor Lisa Cook on Monday that she had been removed from her position, citing allegations of mortgage fraud. “Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump wrote to Cook in a letter.
“The Federal Reserve Act provides that you may be removed, at my discretion, for cause,” he wrote. “I have determined that there is sufficient cause to remove you from your position.”
Trump pointed to allegations made by Federal Housing Finance Agency Director Bill Pulte, who claimed that Cook listed two different properties as her primary residence within weeks of purchasing each with mortgage financing.
For her part, Cook remained defiant. “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 responding to Trump’s letter. “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, who has not been charged with any crime, has retained attorney Abbe Lowell to represent her. Lowell is a veteran defense lawyer with decades of experience handling cases for high-profile political figures, including former President Bill Clinton, former Sen. Bob Menendez (D-N.J.), and Hunter Biden.
“President Trump has taken to social media to once again ‘fire by tweet’ and once again his reflex to bully is flawed and his demands lack any proper process, basis, or legal authority,” said Lowell. “We will take whatever actions are needed to prevent his attempted illegal action.”
According to CNN, Pulte alleged that Cook “falsified bank documents and property records” in connection with the purchase of two properties — a house in Ann Arbor, Michigan, and a condominium in Atlanta. Mortgage records show she took out loans on both and claimed each as her primary residence.
On Monday, President Donald Trump said the allegations had raised questions about Cook’s integrity and eroded public confidence in her ability to serve on the Federal Reserve.
“The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks,” Trump wrote. “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.”
“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. 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,” he wrote.
