US President Donald Trump has announced that he has removed Federal Reserve Governor Lisa Cook from her position, citing allegations of mortgage fraud.
In a letter shared on Truth Social, which he owns, Trump told Cook, "You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately."
He said there was "sufficient cause" for her dismissal, pointing to a criminal referral that alleged Cook signed conflicting mortgage documents for properties in Michigan and Georgia.
"It is inconceivable that you were not aware of your first commitment when making the second," Trump wrote.
"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. In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity," he added.
Years of issues
The move came after Trump warned Cook last week that he would dismiss her if she did not step down.
Cook, who was nominated to the Fed's Board of Governors by former president Joe Biden in 2022, has previously denied any wrongdoing and said she has "no intention of being bullied to step down."
The allegations surfaced after Federal Housing Finance Agency chief Bill Pulte, a vocal critic of Fed Chair Jerome Powell, accused her of mortgage fraud and referred the matter to the Justice Department.
Two other Biden appointments on the Fed board have some time left in their terms, while Powell could stay on as a governor until 2028 after the end of his term as head of the central bank.
Financial issues have been a regular issue for US central bank officials in recent years. In 2021, the then-presidents of the Dallas and Boston Fed banks both resigned after revelations of active trading in financial markets.
While both were later cleared by the Fed's in-house watchdog of wrongdoing, the central bank's Inspector General nevertheless said their trading created the appearance of a conflict of interest. In response to the controversy, the Fed tightened its ethics rules governing officials' personal investing.
