Trump Threatens to Fire Fed Governor Lisa Cook Amid Fraud Investigation

President Donald Trump said Friday he will fire Federal Reserve Governor Lisa Cook if she does not resign, escalating tensions between the White House and the traditionally independent central bank. “What she did was bad,” Trump told reporters. “So I’ll fire her if she doesn’t resign.”

Cook, a Biden-era appointee, is under investigation after Federal Housing Finance Agency Director Bill Pulte accused her of mortgage fraud. Pulte alleges that Cook improperly listed two different properties as her primary residence, prompting a criminal referral to the Department of Justice. Cook has denied any wrongdoing, calling the accusations politically motivated and factually inaccurate.

In a statement, Cook said she has “no intention of being bullied” out of her position and is assembling documentation to address “any legitimate questions.” The DOJ confirmed it is reviewing the referral, although no formal charges have been filed as of yet.

If Trump successfully removes Cook “for cause,” he could further reshape the Federal Reserve’s seven-member board. With two sitting governors already aligned with him—Michelle Bowman and Christopher Waller—and one open seat, Trump could solidify a conservative majority on the board for years. However, removing a Fed governor requires a legal threshold that past administrations have rarely attempted to meet.

Democrats claim the president is politicizing the central bank. “He’s targeting Cook to shift blame for economic conditions,” said Sen. Elizabeth Warren. As Fed Chair Jerome Powell signals potential rate cuts, the dispute highlights increasing political pressure on the Fed during a volatile economic period.