Trump Tries Firing Fed Gov. Claiming Mortgage Fraud

Donald Trump escalated his war on the Federal Reserve on Monday evening, announcing the removal of a governor of the central bank without clear authority to do so.

On social media, Trump detailed his plan to fire Lisa Cook, the Washington Post reported, citing authority to oust governors for cause. The administration recently latched on to allegations that Cook committed mortgage fraud four years ago by describing both a home in Michigan and one in Atlanta as primary residences.

The allegations — first leveled by Federal Housing Finance Agency director Bill Pulte and quickly escalated in right-wing circles — have not been substantiated. Cook, however, isn’t going down without a fight. A spokesperson said she would not resign and disputed Trump’s authority to remove her.

“I will continue to carry out my duties to help the American economy as I have been doing since 2022,” Cook said in a statement.

The central bank did not immediately comment on the fracas.

The mortgage fraud allegations against Cook are likely a pretense for the administration to take more control of the Fed, which operates independently from the White House. The president has made no secret of his dismay towards the central bank and its chairperson, Jerome Powell, for failing to lower interest rates (which the Fed has signaled it could do as soon as next month).

But the independence of the Federal Reserve is a consistent hallmark of its existence and is believed to be vital in the fight against inflation, as well as for investor belief in the country’s economic system. To that end, no president has ever attempted to remove a sitting governor from the central bank.

The administration has weaponized personal mortgages against its perceived enemies. The Justice Department is investigating the real estate records of New York State Attorney General Letitia James, while Trump has accused Sen. Adam Schiff — a key figure in Trump’s impeachment during his first term — of mortgage fraud.

— Holden Walter-Warner