President Donald Trump dismissed Federal Reserve Governor Lisa Cook on Monday, citing “sufficient cause” over allegations of mortgage fraud. The move marks a dramatic shakeup inside the central bank, as Cook—first appointed by President Joe Biden in 2022—faced scrutiny over claims she improperly listed two primary residences on mortgage documents.
The allegations were first raised by Federal Housing Finance Agency head Bill Pulte, who published images of documents he said showed Cook claiming both a Michigan property and an Atlanta condo as her “primary residence.” Trump warned Cook to resign or face removal. She refused, calling the allegations politically motivated and insisting she would not be “bullied to step down.”
“I do intend to take any questions about my financial history seriously as a member of the Federal Reserve,” Cook said in a statement, pledging to provide documentation to clear her name.
But Trump made good on his threat. In a letter made public on social media, he told Cook her alleged misconduct undermined confidence in the nation’s most powerful financial institution. “The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks. The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve,” Trump wrote. “In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”
Cook’s firing comes at a critical moment for the Fed as it balances inflationary pressures, interest rate policy, and ongoing questions of credibility under past leadership. Trump has long been an outspoken critic of Federal Reserve leadership, accusing it of political bias and poor stewardship of the economy. By ousting Cook, he signals a willingness to enforce accountability at the institution he views as central to restoring economic stability.
