President Donald Trump has demanded the removal of one of the governors of the US central bank, a move that escalates his long-running feud with the institution. Late on Monday, he posted on his Truth Social account a letter addressed to Lisa Cook, saying she was being removed from the Federal Reserve Board of Governors due to mortgage fraud allegations. The move has caused an outcry from Democrats who say it amounts to unprecedented political interference.
Ms Cook was appointed as governor of the Federal Reserve in 2022 by Democratic President Joe Biden, becoming the first African American to serve in the role. Her term was due to end in 2038. She previously served on Barack Obama’s Council of Economic Advisers and worked at the US Treasury. The Fed's governors play a key role in setting monetary policy, and they make up the majority of the committee that decides US interest rates.
Trump's accusation cites claims that Cook falsified records to obtain a mortgage, suggesting she may have attempted to designate two homes in different states as her primary residence. Cook has stated her intention to fight the dismissal, emphasizing that Trump lacks just cause to fire her. Legal experts are skeptical about the grounds for her removal, questioning whether enough evidence exists to support Trump's claims.
The Federal Reserve Act does not grant the president unrestricted power to dismiss a Fed governor, except for causes such as misconduct or criminal charges. Trump's assertion of a criminal referral against Cook is still unverified, with no current charges against her. The market response to the president's demands appears muted as investors await the outcome of this complex political and legal situation.
Ms Cook was appointed as governor of the Federal Reserve in 2022 by Democratic President Joe Biden, becoming the first African American to serve in the role. Her term was due to end in 2038. She previously served on Barack Obama’s Council of Economic Advisers and worked at the US Treasury. The Fed's governors play a key role in setting monetary policy, and they make up the majority of the committee that decides US interest rates.
Trump's accusation cites claims that Cook falsified records to obtain a mortgage, suggesting she may have attempted to designate two homes in different states as her primary residence. Cook has stated her intention to fight the dismissal, emphasizing that Trump lacks just cause to fire her. Legal experts are skeptical about the grounds for her removal, questioning whether enough evidence exists to support Trump's claims.
The Federal Reserve Act does not grant the president unrestricted power to dismiss a Fed governor, except for causes such as misconduct or criminal charges. Trump's assertion of a criminal referral against Cook is still unverified, with no current charges against her. The market response to the president's demands appears muted as investors await the outcome of this complex political and legal situation.
