The Reason Behind President Trump's Decision to Fire Fed Governor

(Dan Tri) - Mr. Trump has just fired a Fed governor, an unprecedented move in the history of the US presidency. What is the real reason behind this decision?

Recently, US President Donald Trump said he fired Ms. Lisa Cook, governor of the Federal Reserve (Fed), for allegedly engaging in improper mortgage lending practices, according to a White House announcement.

In a separate letter to Ms. Cook, President Trump asserted that he had “reason enough to remove her from office,” citing the fact that Ms. Cook declared on her 2021 mortgage documents that both Michigan and Georgia were her primary residences.

Mr Trump accused Ms Cook of "fraud and financial misconduct", saying he had no confidence in her "integrity".

"At its mildest, this conduct demonstrates negligence in financial dealings and calls into question her competence and credibility as a manager," he said.

President Trump also invoked his firing authority under Article 2 of the US Constitution and the Federal Reserve Act of 1913.

Fed Chairman Jerome Powell and Governor Lisa Cook (Photo: Getty).

Ms. Cook was appointed to the Fed's board by former President Joe Biden in 2022. Her term is set to last until 2038. However, the law allows the current Fed governor to be fired "for cause." This power has never been used by US Presidents because the White House has always maintained a principle of not intervening in the Fed to ensure confidence in monetary policy.

William Pulte, director of the Federal Housing Finance Agency, referred Cook’s case to Attorney General Pam Bondi for investigation. Trump’s decision to fire her sparked controversy.

Peter Conti-Brown, a research fellow at Pennsylvania State University, noted that mortgage transactions that took place before Cook was appointed were in the public record when the Senate examined them.

“These officials have been vetted by the President and the Senate. That means they have been vetted,” he said.

Observers say that if Ms. Cook resigns or is fired, Mr. Trump will be able to appoint a replacement and ensure that the majority of members of the Fed Board of Governors share his views on monetary policy.

Previously, President Trump has also repeatedly criticized Fed Chairman Jerome Powell, whose term ends in May 2026, for not accepting interest rate cuts as well as the agency's infrastructure renovation costs.

Source: https://dantri.com.vn/kinh-doanh/ly-do-dang-sau-quyet-dinh-sa-thai-thong-doc-fed-cua-tong-thong-trump-20250828164702972.htm