Trump Fires Fed Governor Lisa Cook Over Mortgage Fraud Allegations

Donald Trump has removed Federal Reserve Governor Lisa Cook from her position, citing allegations of mortgage fraud. The firing was announced on August 25, 2025, through Trump’s Truth Social platform, where he claimed he was acting on a “criminal referral” from the Department of Justice and asserting his constitutional authority under Article II [1]. Cook became the first sitting Fed governor to be terminated by a U.S. president, according to reports [2].

The allegations against Cook reportedly stem from claims by real estate developer Bill Pulte, who accused her of misrepresenting two properties as her primary residence on mortgage applications. However, no public evidence supporting these claims has been released [3]. The move has raised concerns among legal experts, who emphasize that the burden of proof for removing a Fed official is high and that allegations alone are not sufficient grounds for action [7].

Cook’s removal has sparked criticism from lawmakers and financial analysts, with some arguing that it undermines the Federal Reserve’s independence and could open the door for political interference in monetary policy [5]. The timing of the dismissal, ahead of an upcoming election cycle, has also drawn scrutiny, with critics suggesting potential political motivations [8].

Cook, the first Black woman to serve on the Federal Reserve Board, had been a vocal advocate for policies addressing economic inequality and racial disparities in access to credit [9]. Her removal creates a vacancy on the Board of Governors, which is now less representative of historically underrepresented groups. The Federal Reserve Act allows the president to remove governors for cause, but such actions are rare and typically reserved for cases involving misconduct or dereliction of duty [6].

As of the announcement, no immediate impact on the cryptocurrency market has been observed. Financial analysts note that the firing does not appear to have influenced major crypto networks such as Bitcoin or Ethereum, and there are no reported changes in institutional policies linked to the event [4]. The Department of Justice referral remains under investigation, and the White House has not yet released detailed documentation supporting the allegations. The Fed’s Board Chairman has also not publicly commented on the matter [10].

The event marks a rare instance of political intervention in the Federal Reserve and has reignited debates about the balance between executive authority and central bank autonomy.

Sources:

[1] The Guardian (https://www.theguardian.com/business/2025/aug/25/trump-fires-federal-reserve-governor-lisa-cook)

[2] NBC News (https://www.nbcnews.com/politics/white-house/trump-removing-federal-reserve-governor-lisa-cook-rcna227138)

[3] KATV (https://katv.com/news/nation-world/trump-fires-fed-governor-lisa-cook-amid-mortgage-fraud-allegations-bill-pulte-attorney-general-pam-bondi-jerome-powell-adam-schiff)

[4] USA Today (https://www.usatoday.com/story/news/politics/2025/08/25/donald-trump-lisa-cook-federal-reserve-governor/85825519007/)

[5] The Hill (https://thehill.com/homenews/5469942-trump-moves-to-fire-fed-gov/)

[6] New York Post (https://nypost.com/2025/08/25/us-news/trump-fires-federal-reserve-gov-lisa-cook-over-mortgage-fraud-allegations/)

[7] Al Jazeera (https://www.aljazeera.com/economy/2025/8/26/trump-orders-removal-o-fed-governor-cook-over-mortgage-fraud-claims)

[8] KOB.com (https://www.kob.com/ap-top-news/the-latest-trump-fires-federal-reserve-board-member-lisa-cook-amid-mortgage-fraud-allegations/)