- calendar_today August 22, 2025
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Fed Governor Lisa Cook is not stepping down from her job, despite President Donald Trump tweeting that she had been “removed” from her position “effective immediately.” In a letter, Trump accused Cook of making “false statements” and said there was “sufficient reason” to believe Cook had “made false statements on one or more mortgage agreements.”
Trump posted the letter on Truth Social on Friday, five days after he first called for her to resign on the platform. He said in the letter that he had the power to fire Cook by virtue of both the U.S. Constitution and the Federal Reserve Act of 1913, which grants presidents the ability to remove governors on the Fed’s Board “for cause.” The president argued there was “cause” to believe that Cook had committed misconduct.
“I have determined that faithfully enacting the law requires your immediate removal from office,” Trump wrote.
The president’s allegations against Cook come from Bill Pulte, a Trump appointee to an agency that regulates Fannie Mae and Freddie Mac. Pulte claimed that she used two primary residences, one in Ann Arbor and one in Atlanta, in 2021 to get better mortgage terms. He alleged that the government official, who was appointed by then-President Joe Biden in 2022, falsely claimed two primary residences in 2021 to receive better mortgage terms. Speaking to Fox Business’ “Mornings with Maria,” Pulte placed the allegations in the context of broader criminal behavior.
“It’s very odd to see people try to twist back way sideways and upside down to justify mortgage fraud,” Pulte said. “This is a very serious crime. Mortgage fraud carries up to 30 years in prison. I believe the president has ample cause to fire Lisa Cook. Whether he wants to do that or not is entirely up to the president. However, we will go where mortgage fraud is. If mortgage fraud is with a Republican or Democrat, it doesn’t matter—if you commit mortgage fraud in President Trump’s America, we’re going to come after you. And Lisa Cook is no exception to that.”
Pulte also submitted a criminal referral to the Justice Department on Aug. 15, accusing Cook of falsifying bank documents and property records. No criminal charges have been filed.
Cook was quick to push back against Trump’s claim that he could fire her, as she serves as one of seven governors on the Federal Reserve Board. “President Trump purported to fire me “for cause” when no cause exists under the law, and he has no authority to do so. I will not resign. 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 provided to Fox News Digital.
Cook has hired a high-profile lawyer in Abbe Lowell, who previously represented Hunter Biden, New York Attorney General Letitia James, as well as Jared Kushner and Ivanka Trump. In a statement, he made clear that he did not recognize the “authority” of Trump’s attempt to remove Cook, and he was confident of ultimate victory.
“President Trump has taken to social media to once again ‘fire by tweet,” and once again, his reflex to bully is flawed, and his demands lack any proper process, basis, or legal authority. We will take whatever actions are needed to prevent his attempted illegal action,” Lowell said.
FOX Business has reached out to the Federal Reserve for comment, but officials did not immediately respond.
Lowell subsequently said he would be filing a lawsuit on Cook’s behalf to challenge Trump’s move to have her removed. “President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” he added.
Democrats Slam Trump’s Attempt as ‘Authoritarian Power Grab’
Top Democrats, including House Minority Leader Hakeem Jeffries, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., all came to Cook’s defense and said Trump was acting unconstitutionally. Raskin told Axios, “What an outrage and a scandal. This is the big one constitutionally.”
Warren called the move “an authoritarian power grab.” The Massachusetts senator continued, “Trump is desperately looking for a scapegoat to cover for his own failure to lower costs for Americans, and firing Lisa Cook is his latest move.”
Jeffries agreed, adding there was not “a shred of credible evidence that she has done anything wrong.” The New York lawmaker went after Trump directly, however, saying, “To the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House. The American people are not buying your phony projection and slander of a distinguished public servant.”
Trump’s move comes after he has repeatedly sparred with Federal Reserve Chair Jerome Powell over interest rate policy. The president and his allies in Congress have pushed the central bank to slash rates to drive economic growth and make it cheaper for the federal government to service the national debt, which is over $37 trillion.
