What to Know About Lisa Cook, the Fed Governor who Trump Says He’s Firing

August 28, 2025

President Donald Trump has announced the firing of Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, marking an unprecedented challenge to the central bank's independence. Cook has refused to step down, stating the president lacks the authority to remove her, and her lawyer announced plans to sue. Cook, who made history in 2022 as the first Black woman to serve on the Fed's board of governors, was appointed by President Biden for a term running through 2038.

Who is affected

Lisa Cook, Federal Reserve Governor
The Federal Reserve Board and its independence
U.S. financial markets and the broader economy
American consumers whose loans are influenced by Fed interest rate decisions
Bond investors who rely on Fed credibility to manage inflation

What action is being taken

President Trump is attempting to fire Federal Reserve Governor Lisa Cook
Cook is refusing to step down from her position
Cook's attorney is preparing a lawsuit to challenge Trump's action
Bill Pulte, head of the Federal Housing Finance Agency, is pursuing allegations of mortgage fraud against Cook

Why it matters

This marks the first time a president has attempted to fire a Fed governor, challenging the central bank's political independence
Fed independence is considered critical for fighting inflation and maintaining financial market stability
Cook's removal would give Trump an opportunity to appoint a loyalist to the Fed's governing board
Fed governors serve 14-year staggered terms specifically designed to insulate them from political influence
The law only allows presidential removal of Fed governors "for cause," typically requiring a formal proceeding

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint