Federal Reserve Governor Lisa Cook has vowed not to resign from her position after President Trump fired her over mortgage fraud allegations. Cook argued that the president has no authority to remove her from her post and that she will continue to carry out her duties to help the American economy. Trump last week called for the Fed governor to resign following allegations by Bill Pulte, a Trump ally and head of the Federal Housing Finance Agency (FHFA), that she committed mortgage fraud by listing two primary residences. Cook has been appointed by former President Biden in 2022 and has been appointed by former President Biden in 2022.
The president has authority to fire members of the Federal Reserve Board of Governors for cause, but it is unclear if the allegations against Cook would reach that standard. Trump wrote in a letter to Cook, stating that the Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks. Cook has retained Abbe Lowell, a prominent Washington attorney, to represent her.
Cook has been criticized for her deceitful and potentially criminal conduct in a financial matter, and she has been urged to take whatever actions are needed to prevent Trump’s attempted illegal action.
