Trump Moves to Fire Fed Governor Lisa Cook Over Unproven Mortgage Allegations

On August 25, 2025, President Trump announced he was removing Federal Reserve Governor Lisa Cook, citing what he called "deceitful and potentially criminal conduct in a financial matter." The allegation originated with Bill Pulte, the Trump appointee overseeing Fannie Mae and Freddie Mac, who claimed Cook had described two properties bought weeks apart in 2021 as primary residences to obtain better loan terms. Cook had not been charged with any crime. She said she would remain in her post, stating that Trump "purposed to fire me 'for cause' when no cause exists under law."

The Federal Reserve Act permits removal of a governor only "for cause," a protection written to insulate monetary policy from presidential pressure. No president had previously removed a sitting Fed governor. The attempt came while Trump was publicly demanding lower interest rates, which meant the removal would have changed the composition of the body setting those rates. The Federal Reserve responded by reaffirming that removal protections exist so policy decisions rest on economic analysis.

Cook sued on August 28. On September 9, 2025, a federal judge blocked the removal while the case proceeded, and Cook remained in office. The dispute continued in the appellate courts and at the Supreme Court after August 2025.