Trump Demands Immediate Removal of Fed Governor Lisa Cook

UPDATE: President Donald Trump has just announced the removal of Lisa Cook, a governor of the Federal Reserve, escalating tensions with the central bank. Late on Monday, Trump took to his Truth Social account, alleging Cook’s involvement in mortgage fraud and demanding her dismissal.

This shocking development has ignited fierce backlash from Democrats, who argue it represents a dangerous precedent of political interference in the independent institution. Cook, appointed by President Joe Biden in 2022, made history as the first African American to serve on the Federal Reserve Board, with her term set to last until 2038.

Trump’s post cited claims that Cook falsified documents to secure a mortgage, stating she signed two forms asserting two different homes were her primary residence. “It is inconceivable that you were not aware of your first commitment when making the second,” he wrote, raising questions about her integrity.

In response to the allegations, CNN has reviewed the mortgage documents, which did indicate that Cook claimed two primary residences, but it remains unclear if she disclosed this to either lender. Cook has not been charged with any crime and has vowed to fight her dismissal, asserting that Trump lacks the justification to remove her.

This controversy could lead to an intense legal battle as the Federal Reserve Act does not grant the president unilateral authority to dismiss a Fed official without cause. Trump cited a “criminal referral” against Cook from a housing finance regulator, pushing for an investigation into her actions. However, no formal investigation has been confirmed, and legal experts express skepticism regarding the validity of Trump’s claims.

Market reaction to Trump’s demand has been muted, with investors cautiously optimistic as they await further developments. The Federal Reserve plays a critical role in shaping US monetary policy, impacting interest rates currently set between 4.25% and 4.5%. Trump’s ongoing pressure on the Fed, including calls for rate cuts to stimulate economic growth, highlights the high stakes involved in this unfolding situation.

As this story develops, all eyes will be on the Federal Reserve and Cook’s legal response. The implications extend beyond individual careers, potentially affecting the economic landscape as the debate over interest rates and inflation intensifies.

Stay tuned for updates on this urgent matter that could reshape the future of the Federal Reserve and US monetary policy.