In brief
President Donald Trump has demanded the removal of Lisa Cook, a governor on the Federal Reserve Board, escalating tensions with the central bank. Cook, appointed by President Biden, faces allegations of mortgage fraud which she denies. Trump's actions provoke outcry from Democrats who view it as political interference. The legality of his proposed dismissal remains uncertain, potentially igniting a legal battle.
President Donald Trump has demanded the removal of one of the governors of the US central bank, a move that escalates his long-running feud with the institution. Late on Monday, he posted on his Truth Social account a letter addressed to Lisa Cook, saying she was being removed from the Federal Reserve Board of Governors due to mortgage fraud allegations.
This move has caused an outcry from Democrats who say it amounts to unprecedented political interference. Ms. Cook was appointed as governor of the Federal Reserve in 2022 by Democratic President Joe Biden, becoming the first African American to serve in the role. Her term was due to end in 2038.
Cook previously served on Barack Obama's Council of Economic Advisers and worked at the US Treasury. The Federal Reserve is responsible for setting US monetary policy, including interest rates.
Trump cited allegations that Cook may have falsified records to obtain a mortgage, claiming that she signed two documents attesting that two homes in different states were both her primary residence. However, CNN has reported that it is unclear whether an investigation has been opened, and Ms. Cook has not been charged with any wrongdoing.
According to legal experts, Trump's ability to remove Cook could spark a significant legal conflict over whether there is just cause for dismissal. Meanwhile, Trump’s push for lower interest rates continues to influence his stance against Fed officials.
