Trump fires Fed governor Lisa Cook amid mortgage fraud allegations

US President Donald Trump has dismissed Federal Reserve governor Lisa Cook over allegations of mortgage fraud, marking his latest move against the central bank’s independence.

Cook’s removal gives Trump the chance to name a replacement and gain more influence over Fed policy, after repeated demands for lower interest rates were ignored.

The Trump administration has previously targeted political rivals such as New York attorney general Letitia James and California senator Adam Schiff with similar mortgage fraud claims, which both denied.

Cook, however, is not a politician. Appointed by Joe Biden in 2022, she made history as the first Black woman to serve on the Fed board. Her term was set to run until 2038. A highly regarded economist, she has taught at Harvard and Stanford and served on Barack Obama’s Council of Economic Advisers.

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The allegations against her were first raised by Bill Pulte, a Trump appointee leading the Federal Housing Finance Agency. He claimed Cook had listed two separate properties as her primary residence when applying for mortgages in 2021.

“How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?” Pulte posted on X, formerly Twitter, while referring the case to the Department of Justice.

Trump quickly amplified the claims before Cook could respond. On Wednesday, he wrote on Truth Social that she “must resign, now!!!”