Trump Fires Fed Governor Lisa Cook Amid Controversy

President Donald Trump said that he had “removed” Federal Reserve Governor Lisa Cook “effective immediately,” in a letter obtained by Fox News Digital. However, Cook pushed back against Trump’s move, vowing to continue doing her job and not step down, thrusting the Fed governor’s job into the middle of a constitutional fight.

The letter from the president, which he shared on Truth Social, arrived five days after Trump first called for Cook’s resignation on Truth Social. In the letter, Trump said he was firing her “for cause,” a move that he is allowed to do under Article Two of the U.S. Constitution and the Federal Reserve Act of 1913.

Specifically, Trump said that he “has sufficient reason to believe” that Cook had “made false statements on one or more mortgage agreements” and that “cause” for her removal had been “officially certified by the Secretary of the Treasury, as required by the law.” Trump’s allegations against Cook are based on a referral from Bill Pulte, a Trump-appointed leader of an agency that oversees Fannie Mae and Freddie Mac. Pulte has accused Cook of illegally listing two primary homes, one in Ann Arbor, Michigan, and the other in Atlanta, Georgia, to obtain a more favorable interest rate on her mortgages in 2021.

During an interview on Fox Business’ “Mornings with Maria,” Pulte offered a harshly worded summary of the allegations.

“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.”

Pulte made a criminal referral to the Justice Department on Aug. 15, where he accused Cook of falsifying bank documents and property records. As of press time, the DOJ has not moved forward with any charges.

Cook, who was nominated by then-President Joe Biden and joined the Fed’s Board in 2022, pushed back against Trump’s claim that he could fire her.

“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 in a statement provided to Fox News Digital.

Cook is being represented by Abbe Lowell, a high-powered lawyer who has previously represented Hunter Biden, New York Attorney General Letitia James, as well as former President Trump’s son-in-law, Jared Kushner, and daughter, Ivanka Trump. In a statement responding to Trump’s firing letter, Lowell took a hard line against the former president.

“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 comment, but did not receive a response.

Lowell later announced that he and Cook would be filing a lawsuit to challenge the attempted firing 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.

Leading Democrats Speak Out Against Trump’s Removal

Leading Democrats quickly came to Cook’s defense, saying that Trump’s attempted power grab was both unconstitutional and politically motivated. House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all took to social media to denounce Trump’s move.

Raskin also sent a statement to Axios, saying, “What an outrage and a scandal. This is the big one constitutionally.”

Warren said that Trump was trying to do an “authoritarian power grab” and that the former president was trying to find “a scapegoat to cover for his own failure to lower costs for Americans and firing Lisa Cook is his latest move.”

Jeffries echoed that thought, saying that there was “not a shred of credible evidence that she has done anything wrong.” Jeffries also launched an attack on Trump himself, 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.”