U.S. President Donald Trump has announced the immediate removal of Federal Reserve governor Lisa Cook, in an unprecedented clash with the central bank’s leadership.
Trump, posting late Monday on Truth Social, accused Cook of making false statements on mortgage documents and cited constitutional authority to dismiss her.
He claimed Cook signed agreements for two separate properties in different states as her “primary residence” within weeks of each other.
Cook, however, rejected the president’s move, insisting he has “no authority” to fire her and vowing not to resign.
“I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she said. Her lawyer, Abbe David Lowell, called Trump’s action illegal and promised to challenge it.
The dismissal marks the first time a U.S. president has attempted to remove a sitting Fed governor, a move likely to spark a legal battle over the central bank’s independence.
Cook, appointed by former President Joe Biden in 2022, is the first African American woman to serve on the Fed’s Board of Governors.
The allegations against her originated in a letter from Trump ally Bill Pulte, who urged the Justice Department to investigate what he described as mortgage fraud.
Cook has dismissed the claims as politically motivated, saying they stem from a loan application made four years before she joined the Fed.
Trump’s escalating fight with the Fed comes amid growing pressure on Chair Jerome Powell, whom he has repeatedly attacked for not cutting interest rates fast enough. Analysts warn the attempt to reshape the central bank could rattle financial markets and undermine confidence in U.S. monetary policy.
On Tuesday, the U.S. dollar weakened in Asian trading as investors speculated that Trump may seek a more compliant Fed board to push for aggressive rate cuts.
