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President Donald J. Trump on Monday, August 25 published a letter firing Federal Reserve Board of Governors member Lisa Cook, citing her criminal referral for mortgage fraud as justification.
Members of the board, who are appointed by the U.S. president with the advice and consent of the Senate, serve 14-year terms, and normally cannot be removed except “for cause.”
In his letter to Cook, posted on Truth Social, Trump said that there was cause to remove Cook because of a criminal referral related to alleged false statements on mortgage documents.
President Trump’s letter of termination to Cook said in part:
Following Trump’s announcement, Cook said she will not resign and will continue to carry out her duties. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in a statement.
According to reporting by Arjun Singh of the Epoch Times, her lawyer Abbe David Lowell (the go-to legal counsel for corrupt DC Democrats) said Trump’s demands lacked proper process, basis, or legal authority, and “we will take whatever actions are needed to prevent his attempted illegal action.”
The Federal Reserve did not immediately respond to a request for comment.
Cook had been the focus of Trump’s public scrutiny previously, and he had threatened her with termination if she did not resign. The criminal referral of Cook’s alleged mortgage fraud began when the director of the Federal Housing Finance Agency, William Pulte, sent a letter on Aug. 15 accusing her of the offense and seeking a Department of Justice investigation.
Mr. Singh reported Cook was appointed to the Federal Reserve’s Board of Governors by President Joe Biden in May of 2022, and was the first African-American woman to serve on the Board. She previously worked as a professor of economics at Michigan State University and in the administration of President Barack Obama, serving as a senior economist on the Council of Economic Advisers.
Republicans have long opposed Cook, with GOP members of the U.S. Senate Banking Committee in 2022 describing her as taking “extreme left-wing positions,” citing her past social media posts in support of progressive political causes. No Republican senator voted for her confirmation in 2022.
“If mortgage fraud is proven and the case proceeds to sentencing, it’s typically charged as a federal crime,” said Patrick Delahunty, a former federal prosecutor who now works as an attorney focused on white-collar criminal investigations CNN reported. “The sentence would depend upon the loss suffered by the bank or lender that extended the loan.
“It speaks to the determination of this administration to remake the Federal Reserve and serves as a warning to the other Biden appointees…” said SGH Macro Advisors’ Tim Duy.
- Donald Trump
- Federal Reserve Governor Lisa Cook
- Fed Chairman Jerome Powell
- False statements on mortgage documents
- For cause firing
- wrongful termination
- criminal referral
- DOJ investigation
- mortgage fraud
- federal crime
- Federal Reserve
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