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Trump Removes Federal Reserve Governor Lisa Cook, citing Unspecified Allegations
Washington D.C. – Former president Donald Trump has removed Lisa Cook from her position on the Board of Governors of the Federal Reserve, effective immediately. Trump announced the dismissal Monday evening via a post on his Truth Social platform, accompanied by a letter reiterating previously leveled allegations of mortgage fraud against Cook.
The move comes amidst ongoing criticism from Trump of the Federal Reserve’s monetary policy, particularly its recent decision to hold interest rates steady. Cook’s term was originally set to conclude in 2028. She had previously stated she had ”no intention of being bullied to step down from my position” and was working to address the claims made against her. The Federal Reserve has not yet issued a public statement in response to the dismissal or the allegations.Trump’s letter repeated claims of mortgage fraud first brought forward earlier this month by individuals associated with his administration. Details of these allegations remain largely unspecified, though they have prompted scrutiny of Cook’s financial history.
The dismissal is the latest in a series of actions demonstrating Trump’s willingness to directly challenge the independence of the Federal Reserve. He has repeatedly called for interest rate cuts,despite the Fed’s concerns that such a move could exacerbate inflationary pressures. Minutes from the Fed’s July meeting revealed officials were wary that Trump’s proposed tariff policies could further fuel inflation.
Federal Reserve chair Jerome Powell, also a frequent target of Trump’s criticism, indicated last week that a potential rate cut in September remained under consideration, contingent on economic data, particularly the strength of the job market.
This action follows Trump’s recent appointment of Stephen Miran, chair of the white House Council of Economic Advisers, to fill a separate vacancy on the Board. Miran is slated to serve the remainder of Adriana Kugler’s term,following her resignation. However, Miran’s appointment still requires confirmation by the Senate.
Lisa Cook, an economist and professor of international relations at Michigan State University prior to her appointment, joined the Federal Reserve Board of Governors in 2022 and was reappointed the following year. Her presence on the board represented a step towards greater diversity, as she is the first Black woman to serve as a federal Reserve Governor.
The Federal Reserve operates as an self-reliant agency within the government, tasked with maintaining the stability of the U.S. financial system and promoting maximum employment. the President appoints members to the board of Governors, but the Fed’s decisions are intended to be free from political influence.Trump’s removal of Cook raises questions about the future of the Fed’s independence and the potential for increased political interference in monetary policy.
