Trump fired Federal Reserve Governor Lisa Cook, citing FHFA director's pretextual mortgage fraud allegation
President Trump removed Federal Reserve Governor Lisa Cook on August 25, 2025, posting a termination letter to Truth Social citing his Article II authority and a "criminal referral" by Federal Housing Finance Agency Director William Pulte alleging Cook committed mortgage fraud before joining the Fed. The Federal Reserve Act permits removal of Board governors only "for cause," a provision designed to protect the central bank's independence from short-term political pressure. A federal court subsequently found Cook had made a strong showing that the removal violated the statute's cause requirement.
