President Donald Trump is continuing his attempts to reform the Federal Reserve to his liking, this time targeting Lisa Cook, the first Black woman to serve on the Fed’s board. Citing unproven mortgage fraud claims, Trump says he intends to fire Lisa Cook from her post, sparking reactions on the market and across social media.
President Trump’s latest Fed shakedown attempt targets Lisa Cook, who serves as governor of the Fed’s board. Appointed by President Joe Biden, Cook has served on the board of the Fed since 2022. At issue for Trump, Federal Housing Finance Director Bill Pulte raised concerns to the president that Cook committed mortgage fraud. As of now, Cook has not faced any charges nor has she appeared in court regarding the explosive claim.
In a
CNN report, Cook did take out a mortgage on two properties under her name and claimed both as her primary residence. Whether or not that was a logistical snafu remains to be seen, but Pulte and Trump are convinced that a nefarious fraud plot is afoot.
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On Monday (August 25), Trump went on the offensive and posted a letter stating his intentions to fire Cook from her post.
“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. At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator,” read a portion of Trump’s letter to Cook and the Fed board.
Observers believe that this is another attempt by Trump to force the Federal Reserve to lower interest rates, which have skyrocketed over the years since his first term and are considered high at the moment. Financial experts warn that the loss of the Fed’s independence from the two major political parties could have detrimental effects on the economy, which is already under duress.
Cook defiantly pushed with a statement released via her legal team.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” read Cook’s statement. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Cook’s term is set to run until January 2038.
With this matter certainly going to court, all eyes will be on Cook as she works to defend her job from the machinations of the Trump administration. This also adds to Trump’s attempt to have Fed chair
Jerome Powell removed from his post due to not lowering interest rates.
On X, reactions to Trump going after Lisa Cook are pouring in. We’ve got some listed below.
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Photo: Getty
