Trump’s Threat to Fire Federal Reserve Governor Lisa Cook: All Talk, No Action

On August 25, 2025, President Donald Trump announced via Truth Social that he was firing Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud raised by Federal Housing Finance Agency Director Bill Pulte.

This unprecedented move, aimed at a sitting Federal Reserve governor, sparked immediate controversy and legal pushback. Cook, the first Black woman to serve on the Fed’s Board of Governors, responded defiantly, stating, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign.” Her attorney, Abbe Lowell, vowed to challenge the action in court, setting the stage for a potential legal battle that could reach the Supreme Court.