Trump Removes Fed Governor Lisa Cook Over Alleged Mortgage Fraud

In a bold and unprecedented move, President Donald Trump has removed Federal Reserve Governor Lisa Cook from office, citing allegations of mortgage fraud and loss of confidence in her ability to oversee America’s financial system.

In a letter delivered Monday, Trump invoked his authority under the Federal Reserve Act to remove Cook “for cause,” pointing to a criminal referral filed by Federal Housing Finance Agency Director William J. Pulte that alleges Cook falsified documents on two separate mortgage agreements declaring both a Michigan and Georgia property as her “primary residence” just weeks apart.

“It is inconceivable that you were not aware of your first commitment when making the second,” Trump wrote. “It is impossible that you intended to honor both.”

Cook, a controversial Biden appointee confirmed in 2023 on a narrow 51-47 party-line Senate vote, was scheduled to serve a 14-year term on the Fed Board from 2024 to 2038. Her removal marks the first time in American history a sitting Federal Reserve Governor has been ousted by a president a move certain to spark a constitutional and legal battle.

While Cook has not been formally charged, the investigation is now in the hands of Attorney General Pamela Bondi, and the Department of Justice has launched a probe into whether Cook committed mortgage fraud to secure better loan terms.

According to the referral:

• Cook signed a mortgage agreement in Michigan, affirming it would be her primary residence for at least one year.

• Just two weeks later, she signed another agreement in Georgia making the same claim.

• Falsifying “primary residence” status is a federal crime and a red flag in financial oversight roles.

Trump made it clear that the issue isn’t about policy differences it’s about trust, credibility, and the integrity of the U.S. central bank.

“In light of your deceitful and potentially criminal conduct in a financial matter, I do not have such confidence in your integrity,” Trump wrote. “At a minimum, the conduct exhibits gross negligence in financial transactions.”

The White House emphasized that the Fed plays a “tremendous responsibility” in setting interest rates, regulating banks, and shaping the future of the U.S. economy and that any hint of fraud or misconduct is incompatible with those duties.

Predictably, the Left is already crying foul. But under federal law, a president can remove a Fed governor “for cause” and Trump’s team argues that this threshold has been more than met.

Cook’s appointment itself was steeped in politics. She was praised by progressives for her academic background and race, but many critics pointed to her lack of real-world financial experience, partisan activism, and alignment with far-left economic theories. Trump and his allies have also slammed her support for higher interest rates despite ongoing inflation and economic strain on working Americans.

The move comes as Trump continues to press for interest rate cuts to relieve the nation’s $37 trillion debt burden and jumpstart growth. Unlike his earlier, more cautious stance on Fed Chair Jerome Powell, Trump didn’t hesitate with Cook, warning Friday:

“I’ll fire her if she doesn’t resign. What she did was bad.”

Legal experts say Cook could mount a challenge in court, but with a criminal investigation underway, any defense will be complicated by the evidence now under review by DOJ.

The Federal Reserve has yet to comment publicly on Cook’s removal.

Whether this signals more shakeups at the central bank remains to be seen. But one thing is certain: Trump isn’t afraid to hold powerful institutions accountable, even those long thought to be untouchable.

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