A political drama has unfolded in the United States after President Donald Trump announced the immediate removal of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud.
Trump, in a letter posted on his official account on the Truth Social app, said that there was “sufficient reason” to believe Cook had made alleged false statements on mortgage agreements.
Trump argued that this alleged conduct undermines public confidence in Cook’s integrity.
According to Trump’s letter, the decision came after a criminal referral by Federal Housing Finance Agency Director Bill Pulte, who alleged Cook falsified mortgage documents by claiming two properties as primary residences in 2021.
Cook was accused of signing a document attesting that a property in Michigan would be her primary residence for the next year.
“Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year.
“It is inconceivable that you were not aware of your first commitment when making the second,” he wrote.
The U.S. President also cited constitutional powers which he said allowed him to remove her.
However, Lisa Cook, the first African American woman to serve as a Fed governor, has kicked against Trump’s attempt to oust her.
In a statement released through her attorney, Abbe Lowell, she declared: “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.”
Lowell also confirmed Cook’s intent to sue, setting the stage for a legal showdown.
