President Trump Fires Fed Governor Lisa Cook Amid Fraud Allegations, Setting Stage for Legal Battle
President Donald Trump fired Federal Reserve Governor Lisa Cook, a Biden appointee, citing mortgage fraud allegations. Cook denies the claims and plans a lawsuit, challenging Trump's authority and setting up a major legal battle.
Trump Goes Full Godfather
The Free Press
The Lisa Cook Case Could Be the Whole Ball Game
The Atlantic
Federal Reserve official plans to stay despite Trump firing
World News Group
Unclear if Lisa Cook still at Fed after Trump firing
Washington Examiner
Fed board member Lisa Cook defies Trump threat to fire her
New York Daily News
Daily Briefing: Fired from the Fed
USA TODAY
Who Is Lisa Cook and What Did She Do to Get Fired?
TIME Magazine
BREAKING: Trump FIRES Fed Governor Lisa Cook over mortgage fraud allegations
The Post Millennial
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Overview
- President Donald Trump immediately fired Federal Reserve Governor Lisa Cook, a Biden appointee whose term was set to expire in 2038, in an unprecedented move.
- Trump cited allegations of mortgage fraud against Cook, claiming she falsified bank documents and property records, as made by Trump appointee Bill Pulte.
- Cook denies the allegations and President Trump's legal authority to remove her, pledging not to resign and preparing to file a lawsuit.
- This removal is viewed as President Trump's effort to control the independent central bank, aiming to appoint loyalists and push for lower interest rates.
- The firing is expected to spark a significant legal battle, as federal law specifies a president may only remove Fed board members "for cause," likely reaching the Supreme Court.
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Analysis
Center-leaning sources frame this story by emphasizing the potential threat to the Federal Reserve's independence and the resulting economic instability. They use alarmist language and prioritize expert opinions that warn of "political capture" and "undue influence," while downplaying the legitimacy of Trump's stated reasons for firing Lisa Cook. This collective framing highlights the unprecedented nature of the action.
"The effort to oust Cook would appear to be an escalation of Trump’s effort to force the Fed to lower rates."
The Free Press"The situation is extremely fluid."
CBS News"President Trump’s attempt to fire Federal Reserve Governor Lisa Cook is an assault on the bank’s independence."
Semafor"With Pulte in charge, the Federal Housing Finance Agency is becoming another instrument of Trump’s mission to exert control and retaliate against enemies."
Associated Press"Economic and financial analysts are warning that President Donald Trump’s attempt to fire Lisa Cook as a Federal Reserve governor risks undermining the central bank’s independence — something that could ultimately put U.S. households’ finances at risk."
NBC News"Trump's announcement has sparked curiosity in Cook and in the Federal Reserve itself."
USA TODAY"The president’s move was based on allegations by Bill Pulte, director of the Federal Housing Finance Agency, the entity that regulates mortgage guarantors Fannie Mae and Freddie Mac."
USA TODAY"The case is likely to end up at the Supreme Court and could more clearly define the limits of the president's legal authority over the traditionally independent institution."
ABC News"Trump's unprecedented move to fire Federal Reserve Governor Lisa Cook has raised concerns about political influence over the central bank."
Chicago Tribune"Interfering with the Fed’s independence will make markets less stable and fuel inflationary pressures — hurting working people and weakening the economy as a whole."
NBC News"Trump's mortgage fraud accusations against Cook mark the third time he has blamed a political rival, or official he has publicly sparred with, of the crime."
USA TODAY"The legitimacy of his unprecedented removal of a leader of the country’s central bank will hinge on whether he has a good reason."
USA TODAY"The situation puts the Fed in a difficult position."
Associated Press"The nonplussed start to morning trading came as investors digested news of a potential Fed shakeup that could reshape the composition of the Board of Governors."
CBS News"The political independence of the Fed is considered critical to its ability to fight inflation because it enables the central bank to take unpopular steps, like raising interest rates."
ABC News"Trump's announcement to fire Cook marks a significant escalation in his efforts to exert control over the Federal Reserve, raising concerns about political influence on the institution."
Associated Press"Cook's firing escalates Trump's efforts to reshape the Fed's makeup to his liking."
USA TODAY"Trump’s decision to remove a sitting Fed governor has shaken confidence in the institution that underpins the world’s financial system."
ABC News"The treatment that will help a 5-year-old boy is $6 million out of reach."
USA TODAY"The firing is Trump's latest attack on a Fed member."
USA TODAY"The move has caused an outcry from Democrats who say it amounts to unprecedented political interference."
BBC News"Trump’s move is likely to touch off an extensive legal battle that will probably go to the Supreme Court and could disrupt financial markets."
Fortune"Trump’s letter, dated Aug. 25, said he was exercising his authority under Article II of the Constitution as well as the Federal Reserve Act of 1913 to remove Cook “for cause,” justifying the dismissal by claiming that Cook had made misstatements on two mortgage applications."
Roll Call"Trump’s decision to remove a sitting Fed governor has shaken confidence in the institution that underpins the world’s financial system."
Associated Press"Trump's move is likely to touch off an extensive legal battle that will probably go to the Supreme Court and could disrupt financial markets, potentially pushing interest rates higher."
ABC News"President Trump said Monday he has fired Lisa Cook from the Federal Reserve's Board of Governors — a dramatic move after months of public attacks against the central bank."
CBS News"Trump's attempt to dismiss Federal Reserve Governor Lisa Cook caused the dollar to weaken against every major peer and set the stage for a landmark battle over the central bank's independence."
Semafor"Trump stated that there was "sufficient evidence" that Cook made false statements in mortgage agreements, leading to her removal from the Federal Reserve Board."
ABC News"Trump has put increasing pressure on the Fed - especially its chair Jerome Powell - in recent weeks over what he sees as the central bank's unwillingness to lower interest rates."
BBC News"Trump's move to fire Federal Reserve governor Lisa Cook is seen as an authoritarian power grab that could undermine the independence of the central bank."
NPR"The firing of Cook marked an escalation in Trump's attempt to reshape the makeup of the Fed leadership ranks."
USA TODAY"The firing is likely to touch off a legal battle and Cook could be allowed to remain in her seat while the case plays out."
Chicago Tribune"Trump’s move is likely to touch off an extensive legal battle that will probably go to the Supreme Court and could disrupt financial markets, potentially pushing interest rates higher."
Associated Press"Trump's move against Cook came amid an unrelenting pressure campaign against the central bank, with repeated attacks on its policies and leadership."
NBC NewsArticles (91)
Center (34)
FAQ
President Trump cited allegations of mortgage fraud, claiming Lisa Cook falsified bank documents and property records by listing two residencies as her primary residence on loan applications.
Lisa Cook is the first Black woman and first woman of color to serve on the Federal Reserve Board of Governors, appointed in 2022 by President Joe Biden. She has a Ph.D. in economics from UC Berkeley and has held prominent academic and advisory roles in economics and international relations.
Lisa Cook denies the allegations and challenges President Trump's legal authority to remove her, preparing to file a lawsuit; federal law states that a president may only remove Federal Reserve Board members "for cause," indicating an expected legal battle.
The firing is viewed as an effort by President Trump to exert control over the independent Federal Reserve System by removing a Biden appointee, potentially appointing loyalists, and pressuring for lower interest rates.
The case is likely to reach the Supreme Court due to the unprecedented nature of the firing and the statutory limits on presidential removal of Fed governors, with significant implications for the independence of the Federal Reserve.
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