Trump Orders Removal of Federal Reserve Governor Lisa Cook Over Mortgage Fraud Allegations

 President Donald Trump has ordered the immediate removal of Federal Reserve Governor Lisa Cook, citing serious allegations of mortgage fraud. This unprecedented move marks the first time a U.S. president has sought to remove a sitting Federal Reserve governor.

In a statement released today, Trump accused Cook of making false statements on mortgage documents by declaring two different primary residences. He highlighted a criminal referral from the Director of the Federal Housing Finance Agency, which led to a Department of Justice investigation into Cook’s conduct. Trump described the allegations as “deceitful and potentially criminal,” emphasizing that such actions undermine the integrity of the Federal Reserve.

Governor Cook, who was appointed to the Fed board in 2022, is the first Black woman to hold such a position. Her term was set to run through 2038. Trump stated that he no longer has confidence in her trustworthiness or competence to serve in this vital role overseeing U.S. monetary policy.

The Fed board’s independence has traditionally been protected to ensure sound economic management free from political interference. Legal experts anticipate potential challenges to Trump’s directive, which could lead to a significant constitutional and financial debate.

Governor Cook has not publicly responded to the removal order. The Department of Justice investigation is ongoing.

This development adds to the contentious legacy of Trump’s interactions with federal institutions and raises questions about the future direction of U.S. financial governance.