Donald Trump renews effort to fire Federal Reserve governor Lisa Cook

SaveSharefacebookxwhatsapp-strokecopylinkFederal Reserve Board Governor Lisa Cook participates in a board meeting at the Federal Reserve on March 19, 2026 [AFP]By Catherine Nouhan and ReutersPublished On 7 Aug 20267 Aug 2026The White House has revived its efforts to remove Lisa Cook, the first Black woman to serve as a governor at the Federal Reserve, the United States’ central bank.On Friday, media reports emerged that the administration of President Donald Trump had sent Cook a letter threatening her position at the Federal Reserve.Recommended Stories list of 3 itemslist 1 of 3US Fed holds interest rates steady, citing ‘elevated’ inflationlist 2 of 3US labour market sheds jobs in July as labour force participation slumpslist 3 of 3US court deals blow to Trump’s bid to scrap climate grant programmeend of list“You are hereby provided notice that the President is considering removing you from your position,” the letter read.Signed by White House Deputy Chief of Staff Dan Scavino, the letter gave Cook a deadline of three weeks to respond to unproven allegations that she had committed mortgage fraud.It also warned that the crime she was accused of was punishable by up to 30 years in prison. Her conduct, the letter added, constituted negligence that calls into question her trustworthiness as a Federal Reserve governor.Trump first unveiled the claims against Cook in August 2025, in a push to fire her from her role.No other president since the central bank’s founding in 1913 has sought to oust a Federal Reserve governor.The central bank has historically been insulated from political pressure, and under the law, Federal Reserve governors can only be removed by the president “for cause”. A full term runs 14 years.Such laws aim is to shield the central bank from making economic decisions based on political pressures.But Trump has undertaken an aggressive campaign to slash interest rates, which are elevated as a means of combatting inflation.He has also sought to rid the federal government of appointees aligned with his Democratic predecessors. Cook was nominated in 2022 under President Democrat Joe Biden, Trump’s two-time election rival.Trump’s claims against Cook centre on the idea that she listed two homes as her primary residence: one in Georgia and the other in Michigan. That could have made her eligible for favourable mortgage rates.But there is no conclusive evidence so far that Cook sought to deceive lenders, making a successful fraud prosecution unlikely.In June, a US Supreme Court ruling also blocked Trump’s attempt to fire her, though it did clear the way for the president to fire the heads of other independent agencies.The letter sent to Cook this week was dated August 5. That same day, Cook spoke at an economic luncheon in Alaska, saying inflation is “too high” and indicating that she is “prepared to act” by raising interest rates, a position shared by others at the Federal Reserve.Trump has long sparred with the Federal Reserve over interest rates, repeatedly threatening to fire former Federal Reserve Chair Jerome Powell for refusing to bow to his demands.Kevin Warsh, a Trump appointee, took over Powell’s position as chair in May. He has yet to deliver Trump’s wished-for rate cuts, amid stubborn inflation.“We should have the lowest interest rate in the world,” Trump said after last week’s decision by the Federal Reserve to hold interest rates steady for the fifth consecutive time.In a statement, Cook’s legal team said “there is no valid cause” for removing her from her position.“As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed,” lawyer Abbe D Lowell said.