USA Trump's Shock Move: Fed Governor Lisa Cook Axed in Sudden Purge

[webfact]

Picture courtesy of BBC | Reuters

 

US President Donald Trump has abruptly removed Federal Reserve Governor Lisa Cook from her position, igniting a storm in the financial world. In a surprise announcement on his social media platform, Trump revealed he has terminated Cook's employment, citing alleged false statements on mortgage agreements as the reason.

 

Trump's letter to Cook claims she made inconsistent statements regarding her primary residence in different mortgage documents, a move he says justifies her dismissal. Both Cook and the Federal Reserve have yet to publicly respond to this startling development, which took the financial community by surprise late on Monday.

 

For weeks, Trump has ramped up pressure on the Fed and its chair, Jerome Powell, pushing for a reduction in interest rates. The dismissal of Cook, the first African American woman to serve on the board, is viewed as an extraordinary step in the Fed's 111-year history, raising questions about the limits of presidential power over the central bank.

 

Legal experts are currently considering the consequences of this drastic action. The White House may need to defend its decision in court by proving that the reasons for Cook’s firing are legitimate. Trump's public accusations include claims that Cook signed conflicting documents about her residency, suggesting potential mortgage fraud.

 

The saga began when Bill Pulte, a Trump ally in housing finance, flagged the allegations in a public letter to Attorney General Pam Bondi. Pulte urged a criminal investigation into Cook’s mortgage dealings. It remains unclear if any formal investigation is underway, but the tension surrounding this issue is palpable.

 

Cook, addressing the allegations last week, stated that she learnt about them through the media. SHe argues that the issue pertains to a mortgage application submitted before she worked at the Federal Reserve. Her statement decried the attempt to force her resignation, signalling her intent to provide evidence and defend her credibility.

 

If Cook challenges Trump's decision, it could lead to a significant confrontation between the central bank and the presidency. The Federal Reserve has operated independently from the US government since 1951, but this incident could test the boundaries of that independence.

 

Adding to the drama, Trump has openly criticised Powell, using colourful language to express his displeasure with the Fed's interest rate policies. Trump has long argued for large cuts to borrowing rates, clashing with Powell's more cautious approach.

 

Despite the president's frustration, Powell has recently suggested that a reduction in interest rates might be on the horizon. At a major central banking conference in Jackson Hole, Wyoming, Powell hinted at possible rate cuts in September while downplaying the lasting inflationary effects of Trump’s tariffs.

 

This turmoil arises during ongoing tensions between the White House and the Federal Reserve, as Trump's aggressive stance on interest rates represents a significant departure from traditional presidential conduct. The unprecedented removal of a Fed governor raises concern over the stability of financial governance.

 

As the fallout from Trump's bold move unfolds, the financial world is watching closely. This development not only puts the independence of the Federal Reserve under scrutiny but also sets the stage for potential legal battles and political strife. The coming days will reveal how this power struggle impacts the US financial system and international markets.

 

  Adapted by ASEAN Now from BBC 2025-08-26

 

[Slowhand225]

Nothing "Shocking" about it.

[bamnutsak]

I think this fake news?

 

trump "wants" to fire Governor Lisa Cook. 

 

trump has "ordered" (someone?) to fire Governor Lisa Cook.

 

I'm not sure the Village Idiot (trump) can fire a Fed Board Governor?

 

 

Trump told reporters Friday that he would fire Cook if she didn't resign.

 

https://www.investors.com/news/economy/president-trump-fires-federal-reserve-governor-lisa-cook/

 

 

 

[LosLobo]

13 minutes ago, Slowhand225 said:

Nothing "Shocking" about it.

Trump’s already desensitized the world with his criminality. He could make good on his 6th Ave boast and half his followers would still shrug, ‘nothing shocking'.

[Cameroni]

This is superb news. There'll be more Trump appointees in the Fed setting interest rates plus the dollar will fall. 

 

Win Win.

 

Trump never sleeps, this is incredible.

[Cameroni]

The question is did Ms Cook really engage in mortgage fraud?

 

If so...tut tut...

[connda]

The Democrats let the Lawfare Genie out of the bottle.  Now it's alive and well in the wild and is being used by both parties to advance their interests.
Now it would help of these "powerful" people were actually law-abiding citizens, but they all consider themselves to be both 1) special, and 2) above the law.  I doesn't matter if her wins her case in court, Trump's obvious goal was to remove her and put a Trump clone into her position. 

[Eric Loh]

As Paul Krugman correctly said that US will be like Turkey or Venezuela. Investors will never treat US as safe investments haven as they will not trust the economic data coming out of Trump’s handpicked officials. The dollar weakened today and the yields rose higher. Economic disaster await as the cognitive declining President’s policies driving the country towards the cliff. 

[Lacessit]

Trump's move is straight out of the Nazi playbook. Invade the Federal Reserve on a false pretext, then staff it with obedient supporters, as he did with the Supreme Court. It's a repeat of the Gleiwitz Incident.

 

It's a convincing demonstration of Trump's racism, which will play well with his followers.

 

Apparently the fact Trump committed loan fraud, by inflating the size of his triplex apartment from 10,000 square feet to 30,000 square feet, is water under the bridge.

[Keep Right]

 President Trump said: “The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks,” Trump wrote. “The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve. 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.”

 

President Trump has every right to fire this incompetent woman appointed by senile Joe. This woman should have never been on the Federal Reserve board. Another big win for Trump. 

[BLMFem]

1 minute ago, Keep Right said:

President Trump has every right to fire this incompetent woman appointed by senile Joe. 

No, he doesn't. Besides, he's a convicted criminal, he should be in jail.

[Zaphod Priest]

If a little bit of lying on a mortgage application is enough to disqualify someone from office, why is serial liar and fraudster Trump still President?

[Lacessit]

1 minute ago, Keep Right said:

 President Trump said: “The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks,” Trump wrote. “The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve. 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.”

 

President Trump has every right to fire this incompetent woman appointed by senile Joe. This woman should have never been on the Federal Reserve board. Another big win for Trump. 

Please tell me who, apart from the MAGA faithful, has any confidence in Trump's integrity. Trump talking about deceitful and potentially  criminal conduct is the ultimate in hypocrisy.

 

Apparently you are not intelligent enough to understand interfering with the independence of the Federal Reserve sends a message to the rest of the world, to stop loaning money to America.

[JonnyF]

1 hour ago, webfact said:

In a surprise announcement on his social media platform, Trump revealed he has terminated Cook's employment, citing alleged false statements on mortgage agreements as the reason.

 

Good move. If she can't be trusted with her own mortgage she shouldn't be in such a position.

 

These people think they are above the law. 

[BLMFem]

1 minute ago, JonnyF said:

 

Good move. If she can't be trusted with her own mortgage she shouldn't be in such a position.

 

These people think they are above the law. 

Trump, OTOH..............😂

[LosLobo]

14 minutes ago, JonnyF said:

 

Good move. If she can't be trusted with her own mortgage she shouldn't be in such a position.

 

These people think they are above the law. 

Yet here we are again with President Trump!

[JonnyF]

3 minutes ago, LosLobo said:

Yet here we are again with President Trump!

 

Praaaaiiise the Lawd.

 

Imagine if Harris had won. 😃

[bubblegum]

Mortgage fraud is the "go to" accusation. She will fight in court and win. Trump loses every court case where he disrespects the law. So always. In the meantime more financial turmoil.