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President Donald Trump drove the Governor of the Federal Reserve Lisa Cook on Monday and claimed that she was lying about mortgage forms by explaining two primary homes.
In a letter to Cook, Trump said that the Federal Reserve Act determines that it can be removed at its own discretion.
“As set out in the criminal reference of 15 August 2025, by Mr. William J. Pulte, director of the Federal Housing Finance Agency, to Mrs. Pamela Bondi, attorney general of the United States … There is sufficient reason to believe that you have made false statements about one or more mortgage agreements,” wrote. ” “As detailed in the criminal reference, for example, you signed one document that would be a property in Michigan your primary home for the following year.
“Two weeks later you signed a document for a home in Georgia stating that it would be your primary home for the following year,” Trump continued. “It is unthinkable that you were not aware of your first commitment when making the second one. It is impossible that you intended to honor both.”
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President Donald Trump announced the removal of the Governor of the Federal Reserve Lisa Cook in a letter of 25 August 2025. (Al Drago / Bloomberg via Getty Images / Getty images)
Trump wrote that the Federal Reserve has a “enormous responsibility” to determine interest rates and to regulate banks.
He added that Americans should have complete confidence in the honesty of setting up policy and supervising the Federal Reserve.
“In the light of your deceptive and potential criminal behavior in a financial issue, they can’t do that, and I don’t have much faith in your integrity,” Trump wrote. “Minimally, the behavior of the behavior shows the type of gross negligence in financial transactions that question your competence and reliability as a financial regulator.”
He concluded her immediate removal from his office.
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President Donald Trump sent a letter to the Governor of the Federal Reserve Lisa Cook on 25 August 2025 and informed her that she was dismissed from her position due to accusations of mortgage fraud. (Tom Brenner for the Washington Post via Getty Images / Getty Images)
Cook is not accused of any crime.
Trump threatened to remove Cook from her role on Friday while confronted with allegations of mortgage fraud that is being investigated by the Ministry of Justice (DOJ). The investigation was fueled by a criminal reference submitted by Pulte, an avid ally of Trump’s and a critic of the Federal Reserve.
“I will fire her if she does not resign,” Trump told reporters on Friday. “What she did was bad.”
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Left: William Pulte, nominated as director of the Federal Housing Finance Agency, is sworn in in his Senate Banking, Housing and Urban Affairs Committee confirmation hearing in Dirksen Building on Thursday 27 February 2025; Right: Federal Reserve (Left: Tom Williams/CQ-Roll Call, Inc via Getty Images; Right: Andrew Harnik/Getty Images/Getty Images)
Pulte sent his reference to the DOJ on Wednesday and accused her of “having falsified bank documents and immovable property registers to acquire more favorable loan conditions, which would possibly commit mortgage fraud under the criminal status.”
According to the federal legislation that regulates the Federal Reserve system, the president can only remove a sitting governor for the cause that has traditionally been interpreted as applicable to crime or misconduct, rather than policy crimes.
The president’s action to remove Cook from her role marks the first time in history that a president has tried to remove a sitting governor from Federal Reserve, and this can lead to a legal battle.
The president and his allies have repeatedly encouraged the FED to lower the interest rates in an attempt to stimulate the economy and to reduce the costs of maintenance of the more than $ 37 trillion US national debt, although Trump has returned earlier threats to dismiss FED chairman Jerome Powell.
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Cook was appointed by President Joe Biden by President Joe Biden in 2022 and was confirmed by the Senate on a party-line vote of 51-47 in September 2023. Her term as FED governmentor runs 14 years, from 2024 to 2038.
