Trump sacks US Fed Governor Lisa Cook over mortgage fraud allegations
The announcement marked the latest in a series of moves by the Trump administration to expand pressure on the central bank
President Donald Trump moved to oust Federal Reserve Governor Lisa Cook from her post at the US central bank in the wake of allegations from a White House ally that she falsified documents on mortgage applications.
“The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve,” Trump wrote in a letter sent to Cook on Monday, which he posted on Truth Social.
“In light of your deceitful and possibly criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”
Presidents can remove Fed governors from office, but only for cause. Laws that describe “for cause” generally define the term as encompassing three possibilities: inefficiency, neglect of duty and wrongdoing in office.
Trump said it was “inconceivable” that Cook was not aware of requirements in two separate mortgage applications taken out in the same year requiring her to maintain each property as her primary residence.
“At minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your experience and trustworthiness as a financial regulator,” Trump wrote.