Donald Trump Fires Federal Reserve Governor Lisa Cook Over Mortgage Fraud Allegations

President Trump isn’t about to let the swamp status quo stand.

The President just made the boldest move of his second term.

And Donald Trump followed through on one threat that left Democrats feeling sick.

President Trump launches daily broadsides at the Fed for their political machinations to hurt him and help Democrats.

Federal Reserve Chairman Jerome Powell and the Fed Board of Governors approved an interest rate cut in September 2024 in a move that critics saw as a blatant attempt to rig the election for Kamala Harris by creating an economic boom just as early voting started.

Now that President Trump is in office, the Federal Reserve is choking off economic growth by keeping interest rates artificially high.

President Trump took a step towards curtailing the Fed’s political meddling by firing Fed Governor Lisa Cook.

Critics contend Lisa Cook was Joe Biden’s DEI pick for the Fed Board of Governors as Biden picked her to serve on the Fed for the same reasons he selected Kamala Harris as his Vice President and Ketanji Brown Jackson to serve on the Supreme Court.

The law allows the President to fire a Fed Governor for cause.

In this case, the cause was Federal Housing Finance Agency head Bill Pulte referring Cook to the Department of Justice for criminal prosecution on allegations of mortgage fraud.

Pulte accused Cook of claiming two different homes as her primary residence to obtain favorable loan rates.

“U.S. Federal Housing FHFA, alleges in a Criminal Referral to the Department of Justice that Federal Reserve Governor, Lisa D. Cook, committed mortgage fraud by designating her out of state condo as her primary residence, just two weeks after taking a loan on her Michigan home where she also declared it as her primary residence,” Pulte wrote on X.

U.S. Federal Housing FHFA, alleges in a Criminal Referral to the Department of Justice that Federal Reserve Governor, Lisa D. Cook, committed mortgage fraud by designating her out of state condo as her primary residence, just two weeks after taking a loan on her Michigan home… pic.twitter.com/3hlknQ4yzF

— Pulte (@pulte) August 20, 2025

Reporters asked Trump if he would fire Cook and he said he would if Cook didn’t resign.,

“Yeah, I’ll fire if she doesn’t resign. What she did was a bad … so I’ll fire her if she doesn’t resign,” Trump state.

Trump made good on that threat firing cook.

The President wrote in a letter announcing Cook’s firing that the American people couldn’t have confidence in an individual setting interest rate and monetary policy who stands accused of financial crimes.

“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,” Trump stated. “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.”

Cook claimed Trump couldn’t fire her and she intended to remain on the Federal Reserve’s Board of Governors.

“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,” Cook ranted. “I will continue to carry out my duties to help the American economy as I have been doing since 2022.”

But the law in this case appears cut and dry.

The President can terminate a Fed Governor for cause.

And legal experts contend that the President’s argument that a Fed Governor who stands accused of mortgage fraud to obtain a more favorable loan shouldn’t be allowed to vote on interest rates that affect mortgage terms, should meet the legal definition of firing for cause.

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