Trump Fires Fed Guv!

Only two and half years in and Trump fired her because of an allegation.

A nepo baby makes an allegation about a Federal Reserve board governor to generate a conspiracy. The 45th/47th President of the United States openly wants that said person to resign or be fired. The person refuses and denies the allegations.

The president fires that person and the global market goes bonkers.

A 14 year term cut short in less than three years. Now the person is planning on suing the federal government and it could end up in the conservative leaning Supreme Court.

Former president Joe Biden had appointed Lisa Cook to be head of the Federal Reserve Board of Governors. She was confirmed on a 50 to 50 vote with former vice president Kamala Harris breaking the tie.

She is the first black woman to sit on the Board. Before her appointment to the Federal Reserve Board, she was elected in January 2022 to the board of directors of the Federal Reserve Bank of Chicago.

President Donald J. Trump announced that he had fired Cook from her position for what he says are "deceitful and potentially criminal conduct". Cook has stated that she has no plans to resign. At present, it is unclear whether any legally sufficient grounds exist to justify Cook’s dismissal, as the Federal Reserve Act requires that such removal be for cause. 

On August 15, 2025, Federal Housing Finance Agency director Bill Pulte accused Cook of mortgage fraud, saying she claimed two different homes as her main residence in 2021 to get better loan terms. Pulte says he submitted a criminal referral to the Department of Justice. 

Trump done far worse. He is forbidden from operating a business in New York because of fraud.

Pulte had already made similar accusations against two other political adversaries of Trump, namely New York Attorney General Letitia James and Senator Adam Schiff.

Five days after Pulte's accusation, Trump posted on Truth Social that “Cook must resign, now,” calling for her to step down. Later that day, Cook rejected the demand, saying she would not be pressured to leave her post and promised to provide clear answers about her financial records.

On August 25, Trump announced that he fired Cook for cause, although the legality of the firing is disputed and will likely be challenged in the courts..

Later in the day, Lisa Cook responded with a statement that said "President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so." Cook's attorney, Abbe Lowell said that "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."

Sen. Elizabeth Warren (D-MA), the top Democrat on the Banking Committee, called Trump’s actions "an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court."

Cook has not been charged with any crime, and her removal is likely to lead to a court battle between the independent central bank and the executive branch.

The Supreme Court said in May, while granting Trump the ability to remove members of other independent agencies, that the Federal Reserve is a “uniquely structured, quasi-private entity” that has its own distinct historical tradition. That led many to believe the bar would be high for Trump to be able to remove any Fed board members or its chairman.

Monday's move against Cook came amid an unrelenting pressure campaign by Trump against the central bank, with Trump and his top aides and allies repeatedly attacking the institution and its chair, Jerome Powell, over current interest rate policies.

Trump has attacked Powell almost nonstop, calling him "stupid" and saying he "hates me." Trump has also said the board, which Cook serves on, "should be ashamed of themselves."

After Pulte alleged that Cook committed mortgage fraud, Trump quickly reposted his allegations, saying on Truth Social that she "must resign, now!!!"

Pulte said on X after Trump announced Cook's removal, "Fraud will not be tolerated in President Trump’s housing market."

Pulte's focus on Cook's mortgage documentation is just the latest in a series of similar accusations against high-ranking Democrats, such as Sen. Adam Schiff of California and New York Attorney General Letitia James.

He added in a second post, "If you commit mortgage fraud in America, we will come after you, no matter who you are."

The U.S. Dollar Index, a measure of the dollar's strength against a basket of global currencies, declined sharply on Trump's announcement.

Cook, who has a permanent vote on the central bank’s rate-setting committee, was appointed by President Joe Biden to a term running until 2038.

If she is removed from the Fed's board and its rate-setting committee, Trump would gain another opportunity to put his mark on the central bank.

Trump has nominated his top economist, Stephen Miran, to the Fed's board for a term that would run until January. Trump will also have a chance to name a new chair when Powell's term ends in May.

Trump appointed Fed governors during his first term — Michelle Bowman and Christopher Waller. Both are still serving in those roles. However, interest rates change only when a majority of the 12-member committee votes to do so, and a total of four Trump appointees would still be in the minority.

The committee consists of the Fed chairperson, six Fed governors, the Federal Reserve Bank of New York president and four other regional Fed presidents on a rotating basis, who represent districts across the country.

“This is a new attempt of the administration to gain more control over the Fed. They’re pulling as many different levers as they can find to get that control," former Fed economist Claudia Sahm recently told Bloomberg News.