CA, US & World
Trump Fires Fed Governor Lisa Cook in Historic First
President Donald Trump has announced the firing of Federal Reserve Governor Lisa Cook, marking the first time in the 111-year history of the central bank that a president has removed one of its governors.
The move, confirmed Monday in a letter Trump posted on social media, represents a dramatic escalation in his ongoing battle with the Federal Reserve, which he has repeatedly accused of acting too slowly to cut interest rates.
Cook has faced allegations from members of Trump’s administration of mortgage fraud, which the Justice Department has said it will investigate. She has not been charged with any wrongdoing. A CNN review confirmed Cook took out mortgages on two properties listed as her principal residences, but it is not clear if she intentionally misrepresented the information.
In his letter, Trump wrote, “I have determined that there is sufficient cause to remove you from your position,” adding that her alleged conduct showed “gross negligence” and undermined her credibility as a financial regulator.
It remains unclear whether Trump has the legal authority to fire a Federal Reserve governor. By law, board members can only be removed “for cause,” though that standard has never been defined in detail. Legal experts expect the decision to be challenged in court, potentially reaching the Supreme Court.
Cook, who last week said she would not be “bullied” into resigning, has vowed to answer legitimate questions about her financial history.
The firing raises serious concerns about the Fed’s independence, a cornerstone of global financial credibility. Independent central banks are widely seen as producing stronger economic outcomes, including lower inflation. If investor confidence in U.S. economic governance falters, analysts warn American assets could suffer and borrowing costs could rise.
Markets reacted swiftly to the news, with the U.S. dollar index dropping 0.3% on Monday.
The Federal Reserve’s next policy meeting is scheduled for September 16–17, leaving uncertainty about whether Cook will be replaced before then.
Credit: CNN Newsource
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By: CNN Newsource
August 25, 2025
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