President Trump suddenly fired the Fed governor

(Dan Tri) - US President Donald Trump has just announced the dismissal of Fed Governor Lisa Cook due to allegations of mortgage fraud.

President Donald Trump has just posted on the social network Truth Social a document announcing the dismissal of Federal Reserve Governor Lisa Cook.

"By authority granted under Article II of the United States Constitution and the Federal Reserve Act of 1913, as amended, I hereby remove you from your position on the Federal Reserve Board, effective immediately," Mr. Trump said.

President Trump reiterated the content of the petition for prosecution that the director of the US Federal Housing Finance Agency Bill Pulte sent to Attorney General Pam Bondi on August 15.

Mr. Pulte alleges that Ms. Cook listed her permanent residence as an apartment in Atlanta, despite having previously taken out a mortgage on a home in Michigan and claiming it as her primary residence. Mr. Pulte added that the FHFA has documents documenting Ms. Cook’s “mortgage fraud.”

According to Mr. Trump, the Fed has an important role in setting interest rates, managing reserves and member banks. The American people need to be sure they can trust Fed members to keep their policy-setting duties.

"In light of such fraudulent and possibly illegal conduct, they cannot, and I cannot, place any confidence in you. It represents, at a minimum, serious negligence in your financial dealings and raises serious questions about your competence," Mr. Trump wrote.

Ms. Cook has not commented on the information.

Lisa Cook was sworn in as Fed Governor in May 2022 (Photo: AFP).

Last week, Ms. Cook insisted that she had no intention of resigning because of questions raised on social media.

"I take seriously any questions about my financial history as a Fed member. Therefore, I am gathering accurate information to answer all legitimate and truthful questions," Ms. Cook said on August 21, adding that she is gathering accurate information to answer the questions.

In a statement, President Trump asserted that he had the authority to fire Ms. Cook.

However, experts say the decision raises questions about the Fed's ability to be controlled as an independent agency. It is likely that the dismissal will lead to a legal battle, and Ms. Cook may be allowed to remain in office while the case is heard. She will have to pursue the case herself as a victim, rather than the Fed.

The Fed Board of Governors consists of seven members appointed by the US president and confirmed by the Senate, each serving a non-reappointment 14-year term. The chairman and vice chairman of the board are also appointed by the president from among the governors and serve a four-year term, but can be re-nominated multiple times.

Ms. Cook was appointed as Fed Governor under former President Joe Biden and will serve a term until 2038. Before that, she was an economist at Michigan State University.

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 also repeatedly criticized Fed Chairman Jerome Powell, whose term will end in May 2026, for not accepting lower interest rates as well as the agency's infrastructure renovation costs.

Source: https://dantri.com.vn/kinh-doanh/tong-thong-trump-bat-ngo-sa-thai-thong-doc-fed-20250826092234054.htm