Lisa Cook Remains at the Fed After Trump Declares Her Fired

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President Donald Trump has attempted to fire Federal Reserve Governor Lisa Cook, but she has refused to step down. The incident has ignited a constitutional debate over presidential power and the independence of the Fed, an institution that has long prided itself on being beyond the reach of politics.

In a letter obtained by Fox News Digital, Trump stated that he had “removed Cook “effective immediately and that the “termination of your service as a Member of the Board of Governors of the Federal Reserve System is finalized.” The post-Trump posted on Truth Social came just five days after he first called for Cook’s resignation on the platform.

Citing the U.S. Constitution and the Federal Reserve Act of 1913, Trump claimed in the letter that he has the power to remove governors from the Fed’s Board of Governors “for cause.” He also alleged that there was “sufficient reason to believe” that Cook “made false statements on one or more mortgage agreements.”

“I have determined that faithfully enacting the law requires your immediate removal from office,” Trump wrote.

The accusations against Cook were made by Bill Pulte, who was appointed by Trump to serve on an agency that oversees Fannie Mae and Freddie Mac. Pulte, a businessman from Michigan, accused her of falsely claiming two primary residences (one in Ann Arbor and one in Atlanta) in 2021 to get more favorable mortgage rates.

Bill Pulte shared the allegations on Fox Business’ “Mornings with Maria” on Tuesday, September 5. Pulte warned that the allegations should not be overlooked.

“It’s very odd to see people try to twist back way sideways and upside down to justify mortgage fraud,” Pulte said. “This is a very serious crime. Mortgage fraud carries up to 30 years in prison. I believe the president has ample cause to fire Lisa Cook. Whether he wants to do that or not is entirely up to the president. However, we will go where mortgage fraud is. If mortgage fraud is with a Republican or a Democrat, it doesn’t matter—if you commit mortgage fraud in President Trump’s America, we’re going to come after you. And Lisa Cook is no exception to that.”

On August 15, Pulte filed a criminal referral to the Justice Department, accusing Cook of falsifying bank documents and real estate records. While a referral can be used as a basis for an indictment, Cook has not been formally charged.

Cook was appointed to the Federal Reserve Board in 2022 by then-President Joe Biden. She quickly fired back at Trump in a statement released on Thursday, September 7. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. 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 said.

Cook is represented by attorney Abbe Lowell, who has previously represented Hunter Biden, New York Attorney General Letitia James, and Jared Kushner and Ivanka Trump. In a statement released to Fox News Digital, Lowell had harsh words for Trump’s actions.

“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. We will take whatever actions are needed to prevent his attempted illegal action,” Lowell said.

FOX Business reached out to the Federal Reserve for a comment on the matter, but officials there did not immediately respond.

Abbe Lowell later said he would be filing a lawsuit on behalf of Cook to challenge the removal attempt in court. “President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” Lowell said.

Democrats Speak Out Against Trump’s Attempt to Fire Cook

Major Democrats have all spoken out in defense of Cook, calling Trump’s move unconstitutional and political. House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all released statements decrying Trump’s attempt to fire Cook.

In an interview with Axios, Raskin said, “What an outrage and a scandal. This is the big one constitutionally.”

Warren described the attempt to fire Cook as “an authoritarian power grab,” and accused Trump of “desperately looking for a scapegoat to cover for his own failure to lower costs for Americans, and firing Lisa Cook is his latest move.”

Jeffries also said that “to our knowledge, there is not a shred of credible evidence that she has done anything wrong.” Jeffries aimed at Trump directly, saying, “To the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House. The American people are not buying your phony projection and slander of a distinguished public servant.”