Trump Threatens to Dismiss Federal Reserve Governor Over Allegations

On Friday, President Donald Trump announced his intention to dismiss Federal Reserve governor Lisa Cook unless she voluntarily resigns. He labeled her actions as unacceptable, especially following claims from William Pulte, the director of the Federal Housing Finance Agency, who accused Cook of mortgage fraud, including allegations of falsifying bank documents to secure better loan conditions.

Trump's demand for Cook to resign was previously articulated during an event earlier in the week, where he insisted that she "must resign, now!!!" On Thursday, Pulte supported Trump's stance, stating that there was sufficient reason for the president to terminate Cook's position. According to regulations, a Federal Reserve Board member can only be removed "for cause" or due to some misconduct.

In response, Cook issued a statement addressing the allegations made by Trump and Pulte, explaining that she learned about the criminal referral through the media, which pertained to a mortgage application filed four years prior to her tenure at the Federal Reserve. She firmly stated her intention to remain in her role and indicated that she is collecting accurate information to respond to any legitimate inquiries regarding her financial background. The ongoing scrutiny from Trump and Pulte reflects a broader campaign by the president to apply pressure on the Federal Reserve and its leadership in pursuit of lower interest rates. Should Cook be removed, it would create another opportunity for Trump to appoint an ally to the board, adding to the existing influence of his previous appointees, Michelle Bowman and Christopher Waller.