Federal Reserve Governor Lisa Cook is resisting pressure to resign after President Donald Trump issued a public letter declaring her “removed” from her position, effective immediately.
The letter, posted on Trump’s Truth Social account, follows a prior post demanding her resignation and signals a direct confrontation between the White House and a sitting Fed official.
In his letter to Cook, President Trump cited his constitutional authority and the Federal Reserve Act of 1913, which allows a president to remove Federal Reserve Board members “for cause.”
Trump argued that Cook had provided false information on multiple mortgage agreements, stating that this gave him sufficient grounds for removal.
The letter stated that the president had determined Cook’s continued presence on the board would conflict with “faithfully enacting the law,” and claimed her actions warranted immediate termination. The move drew sharp criticism from Democratic lawmakers but received support from some within the administration and affiliated appointees.
The mortgage fraud allegations originate from Bill Pulte, a Trump appointee to the Federal Housing Finance Agency’s advisory council. Pulte accused Cook of claiming two different properties—one in Ann Arbor and one in Atlanta—as her primary residence in 2021 to gain favorable mortgage terms.
‘I Will Not Resign’
Cook, who was appointed to the Fed Board by President Joe Biden in 2022, issued a public statement rejecting Trump’s action.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said.
“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 legal counsel, Abbe Lowell, also pushed back, calling Trump’s move an “attempted illegal action.” Lowell, who has represented high-profile figures including Hunter Biden and Jared Kushner, criticized the lack of formal process behind the removal attempt, labeling it another instance of Trump using social media to bypass legal norms.
Allegations of Mortgage Fraud Under DOJ Review
On August 15, Bill Pulte submitted a criminal referral to the Department of Justice, alleging that Cook had falsified documents and property records to secure favorable mortgage conditions.
In a Monday interview on “Mornings with Maria,” Pulte emphasized the seriousness of mortgage fraud, calling it a crime that could carry penalties of up to 30 years in prison.
Pulte asserted that political affiliation would not shield anyone from accountability.
“If mortgage fraud is with Republican or Democrat, it doesn’t matter… we’re going to come after you. And Lisa Cook is no exception to that,” he said.
As of now, the Justice Department has not publicly commented on whether it is pursuing an investigation.
