US President Donald Trump has removed Federal Reserve governor Lisa Cook after accusations of mortgage fraud, raising new questions about the central bank’s independence.
This decision allows Trump to appoint a new member to the Fed board, giving him more control over its future policies. Trump has long pushed for lower interest rates, but the Fed has resisted his pressure.
Pattern of Allegations Against Rivals
The Trump administration has previously used similar mortgage fraud accusations against political opponents, including New York attorney general Letitia James and California senator Adam Schiff. Both rejected the claims.
Unlike them, Cook is not a politician. She was appointed to the Fed by President Joe Biden in 2022 and became the first Black woman to serve on its board. Her term was supposed to last until 2038.
Cook’s Career and Background
Cook is widely respected in the field of economics. She has taught at Harvard and Stanford and earlier worked with former President Barack Obama as a member of the Council of Economic Advisers.
Allegations Sparked by Trump Appointee
The claims against Cook came from Bill Pulte, head of the Federal Housing Finance Agency and a Trump appointee. Pulte alleged that Cook declared two different homes as her “primary residence” when applying for mortgages in 2021.
He criticized her on X, formerly Twitter, asking: “How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?” He also referred the matter to the Justice Department.
Trump’s Immediate Reaction
Before Cook could issue a response, Trump spread the accusations. On Wednesday, he wrote on Truth Social that she “must resign, now!!!”
