President Donald Trump ignited a political and legal battle Monday night after posting a letter on Truth Social claiming he had fired Federal Reserve Board Governor Lisa Cook. Cook, the first Black woman to serve as a Federal Reserve governor, quickly responded that she is not leaving her post and questioned whether Trump has the authority to remove her.
The letter accused Cook of mortgage fraud and declared her removal “effective immediately.” Trump’s ally Bill Pulte, who leads the Federal Housing Finance Agency, had referred Cook to the Justice Department for investigation last week. In his letter, Trump wrote that he had “sufficient cause to remove you from your position.”
Cook, appointed by President Joe Biden and confirmed in 2022, rejected the claims. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she told The New York Times. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Cook has hired attorney Abbe Lowell, who said Trump’s move “lacks any proper process, basis or legal authority.” He vowed to “take whatever actions are needed to prevent his attempted illegal action.” No president has ever fired a Federal Reserve governor, and under the Federal Reserve Act, such officials may only be removed “for cause.”
Cook has not been charged with any crime. Trump had already called for Cook’s resignation after Pulte accused her of falsifying mortgage documents. In response at the time, Cook told the Daily Beast, “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.”
She added that she was compiling accurate information to address questions about her finances. Trump’s letter accused her of “deceitful and potentially criminal conduct in a financial matter” and said her actions raised doubts about her “competence and trustworthiness as a financial regulator.”
Democratic leaders condemned Trump’s action. Senator Elizabeth Warren called it “an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.” House Democratic Leader Hakeem Jeffries said, “Donald Trump is trying to remove her without a shred of credible evidence that she has done anything wrong.”
Representative Jamie Raskin told Axios, “What an outrage and a scandal. This is the big one constitutionally.” Trump biographer Michael Wolff told the Daily Beast that Trump’s contempt for Cook was consistent with his “attitude toward Black women” throughout his campaign.
Cook’s current term runs until 2038. The Federal Reserve and the White House have not yet commented on the controversy.