In‌ a move escalating tensions​ with the Federal Reserve, former President Donald Trump announced the firing of Governor Lisa Cook on Monday ‌evening via a post on his Truth Social platform. Trump⁣ asserts he acted ​under the authority granted by the U.S. Constitution and the Federal Reserve Act of⁣ 1913.

The dismissal follows allegations of mortgage fraud leveled ‍against Cook by Bill pulte,‌ director of the Federal Housing Finance Agency (FHFA). Pulte publicly claimed Cook improperly designated multiple properties – one in Georgia and another in ⁤Michigan -​ as her primary ‍residence,‌ potentially ‍to secure more favorable mortgage terms. This claim centers around the assertion that Cook obtained loans based on ⁤conflicting primary residence ⁢declarations.

“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. Considering your deceitful and potentially criminal conduct in ‌a financial matter,‍ they cannot, and I do not, have‍ such confidence in your integrity.”
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Trump’s post‍ also referenced a purported criminal referral to the ‌Department of Justice regarding the ⁣allegations, initially highlighted by former U.S. Attorney General Pam Bondi. Pulte detailed the​ claims on social media, stating the FHFA’s referral alleges⁣ Cook designated an⁤ out-of-state condominium as⁢ her​ primary residence shortly after‌ securing a loan on ​her Michigan home, were she had ‌also‍ declared primary residency.

This action occurs against a⁣ backdrop of ongoing criticism from Trump ​towards current Federal ‍Reserve Chair ‌Jerome Powell, whom he has repeatedly urged ​to lower interest rates. Trump views lower rates as crucial ⁣for stimulating economic growth, a position ‍at odds‍ with the Fed’s current monetary policy ⁢aimed at curbing inflation.

Notably, this is not the first time Trump⁣ has publicly accused individuals ⁢of mortgage fraud. Similar allegations where ⁣previously directed at‌ California Senator Adam ⁢Schiff and New York Attorney General Letitia James.

The firing of Cook mirrors Trump’s recent dismissal of Dr.​ Erika McEntarfer, the Bureau‍ of Labor Statistics Commissioner,​ following a jobs report that he ​deemed unsatisfactory in July.⁢ Trump pledged to nominate a replacement who would deliver honest and accurate jobs reports, signaling a desire ‌for data⁣ aligned with⁣ his economic‌ narrative.

The legality‍ of Trump’s action to remove Governor Cook is highly likely to be​ contested. The Federal Reserve​ Act outlines specific grounds for removal of ​governors, typically involving misconduct or ⁣incapacity. ​ Legal experts‌ will likely scrutinize whether the allegations against Cook meet these⁤ criteria.

The ⁣Federal reserve ‍has not yet issued a formal response to Trump’s announcement. Further developments are expected as the situation unfolds ‍and potential ⁢legal‌ challenges are considered.