President Donald Trump has announced the removal of Federal Reserve Governor Lisa Cook, citing what he described as “credible allegations” of mortgage fraud, a claim Cook firmly denies.
In a letter made public on Monday, Trump said the decision followed accusations that Cook had listed two different homes—a property in Ann Arbor, Michigan, and a condo in Atlanta—as her primary residence within weeks of purchasing each. The allegations suggest she may have submitted conflicting information on mortgage applications.
“The Federal Reserve must be above reproach. When questions of integrity arise, it is my duty to act in defense of the institution and the American people,” Trump stated.
Cook, who was appointed to the Fed Board in 2022, rejected the claims, describing them as baseless and politically motivated. “I have no intention of being bullied to step down from my position,” she said in a statement. “I will take every legitimate question about my financial history seriously, and I am gathering the accurate records to provide the facts.”
Observers note that while the Justice Department has confirmed a review of the allegations, no charges have been filed. Questions remain about whether Cook’s mortgage filings were errors, oversight, or deliberate misrepresentation.
The dismissal marks a sharp escalation in tensions between Trump and the central bank, as he has repeatedly pressured the Fed to cut interest rates. “This is not just about one individual,” Trump added. “It is about restoring accountability at the highest levels of our financial system.”
Cook’s allies argue that her removal undermines the Fed’s independence and accuse the president of weaponizing allegations for political gain. “This is clearly about silencing a voice that stood firm on economic policy,” said one of her supporters.
For now, Cook has vowed to fight to clear her name, stressing that her record and professional integrity remain intact. “I have served with honor and will continue to defend my reputation against falsehoods,” she said.
