Former President Donald Trump expressed plans to fire Federal Reserve governor Lisa Cook if she doesn’t resign. He labeled her actions as “bad” and made his comments to reporters recently, intensifying the scrutiny on Cook.
This controversy arose after Federal Housing Finance Agency Director William Pulte leveled serious allegations against Cook, claiming she engaged in mortgage fraud. He accused her of falsifying bank documents to obtain better loan terms. This kind of allegation could indicate substantial wrongdoing, making it a potential ground for dismissal as a Federal Reserve board member can only be fired “for cause.”
Pulte, appearing on Fox Business Network, voiced strong support for Trump’s stance, stating, “the president has ample cause to fire Lisa Cook.” However, Cook defended herself, saying the accusations are based on a mortgage application from four years ago, predating her tenure at the Fed. In her response, she emphasized her commitment to transparency and her readiness to answer any legitimate queries regarding her financial history.
This incident highlights an ongoing campaign by Trump against the Federal Reserve amid his push for lower interest rates. Cook’s potential removal could allow Trump to appoint another governor, giving him a stronger influence on the Fed’s decision-making process. Currently, Trump has already appointed Michelle Bowman and Christopher Waller to the board.
Recent data from a Gallup poll showed that public trust in the Federal Reserve has waned, with only 38% of Americans expressing confidence in the institution. This has amplified voices calling for changes at the Fed, revealing growing concerns about monetary policy’s impact on everyday Americans.
The tension between Trump’s administration and the Fed underscores a larger narrative in U.S. politics: the delicate balance between economic control and political influence. As the situation develops, it will be interesting to see both Cook’s response and how this dynamic might shift the Fed’s approach to interest rates.
For further detailed insights, you can refer to this Gallup Poll on Federal Reserve trust.
