President Trump has intensified his campaign against Federal Reserve leadership by demanding the resignation of Governor Lisa Cook following allegations of mortgage fraud. The controversy began when Bill Pulte, a Trump-appointed housing agency director, referred Cook to the Justice Department, accusing her of falsely claiming two separate properties as her primary residence to secure favorable mortgage terms.
Trump publicly echoed Pulte’s demand on his social media platform, writing, “Cook must resign now!!!” Reports suggest he is also exploring formal dismissal options if Cook refuses to step down—a move that would mark a direct attempt to interfere with the independence of the Federal Reserve. If removed, Cook’s departure would open the door for another Trump-aligned nominee and further shift the Fed’s decision-making toward rate cuts.
Cook, however, has rejected all pressure. She issued a firm statement asserting she will not be bullied into resignation based on a social media post and underlined her willingness to cooperate fully with any legitimate inquiries. She’s currently gathering information to clarify her position and the details surrounding the allegations.
If the president were to remove a Fed governor, he would face significant legal hurdles. Federal law stipulates that only “for cause” removals are permissible—generally reserved for misconduct or dereliction of duty. Historical precedent and recent court rulings suggest that misconduct prior to appointment may not meet this standard, making Cook’s possible dismissal legally uncertain.
Cook, appointed by President Biden in 2022 and reappointed in 2023, serves a term that runs well into the future. She holds significance as the first Black woman to serve on the Fed’s Board of Governors. Her steadfast position in the face of mounting political pressure has drawn support from Senate Democrats, who have criticized the move as a political stunt aimed at reshaping the Fed to align with Trump’s preferences.