President Donald Trump moved to fire Federal Reserve Governor Lisa Cook on Monday, asserting “for cause” authority under US Code and saying the removal is effective immediately.
The White House letter says Trump acts under Article II and the Federal Reserve Act. It attaches a criminal referral dated Aug. 15 from Federal Housing Finance Agency Director Bill Pulte to Attorney General Pamela Bondi. The referral alleges Cook made false statements on mortgage documents, including signing one Michigan agreement promising to occupy a home as a primary residence for the next year and, two weeks later, signing a Georgia document making the same promise.
The letter frames the case as a trust and competence issue for a financial regulator. It says the conduct “exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness.”
Cook rejected the action and said she will stay on the board: “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. I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she said via her attorney.
Section 242 of the US Code, which Trump is emanating supposed authority from, allows removal of a Federal Reserve governor “for cause,” but recent commentary stresses that presidents cannot summarily dismiss governors.
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FTC Commissioner Alvaro Bedoya urged precision in coverage: “The President has not fired Lisa Cook. The President is trying to illegally fire her.” The White House letter states Cook is removed “effective immediately,” while Cook and several officials and observers contend the president lacks such authority absent lawful cause and due process.
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