Trump fires Federal Reserve Governor Lisa Cook amid mortgage fraud allegations but she refuses to quit

WASHINGTON, DC: US President Donald Trump fired Federal Reserve Governor Lisa Cook on Monday, August 25. Trump’s decision opens the door for him to appoint a loyalist who backs his push to slash interest rates.

The dismissal dramatically escalates his ongoing effort to tighten control over the Federal Reserve, which has long operated independently of political pressure.

By removing Cook, Trump takes direct steps to install a MAGA-aligned ally who can help him pressure Fed Chair Jerome Powell to cut the central bank’s key interest rates.

Donald Trump announces removal of Federal Reserve Governor Lisa Cook

President Donald Trump announced on his Truth Social platform that he fired Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud.

He accused Cook of engaging in “deceitful and potentially criminal conduct in a financial matter,” and stated that he no longer has "such confidence in your integrity."

"Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year," the president said.

"It is inconceivable that you were not aware of your first commitment when making the second," he wrote.

This move follows President Trump's demand last week that Lisa Cook resign over mortgage fraud allegations. Trump based his call on a public letter from Bill Pulte, a housing finance regulator and close ally, who addressed the accusation directly to Attorney General Pam Bondi.

In the letter, Pulte described the allegations as a “criminal referral” and urged the Justice Department to launch a formal investigation. So far, it remains unclear whether federal authorities have acted on the request or opened a case.

Lisa Cook rejects Donald Trump's attempt to fire her

Lisa Cook rejected President Trump’s attempt to fire her and argued that he holds no legal authority to do so. In her statement, she declared, “President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so.”

She emphasized, "I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022."

The Federal Reserve has not yet responded publicly to Trump’s announcement, which he delivered late Monday.

Bill Pulte leads effort to oust Lisa Cook

Bill Pulte, the Trump-appointed head of the US Federal Housing Finance Agency, led the charge against Lisa Cook’s position at the Federal Reserve. He accused her of falsely claiming two separate properties as her primary residences to secure favorable mortgage rates 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). He also referred the allegations to the Department of Justice, urging them to investigate.

Before Cook had a chance to respond, Trump amplified the accusations. On Wednesday, he posted on Truth Social, demanding that Cook “must resign, now!!!”

Internet reacts to Donald Trump's firing of Lisa Cook

Following Trump’s announcement that he had removed Lisa Cook, internet users quickly took to social media to react. One user wrote, “Lock her up,” while another applauded the move, saying, “Great stuff, Mr. President👏 This is what I voted for.” 

Someone else described the news as “so relieving.”

Not all responses supported the decision. One commenter criticized the action, writing, “President Trump's removal of Fed Governor Lisa Cook over unproven mortgage fraud allegations is deeply concerning—no trial, no conviction, just a unilateral ousting. The Federal Reserve Act allows removal "for cause," but this feels like a stretch that undermines Fed independence. It'll be fascinating to watch; I bet Cook challenges this in court, testing the limits of presidential power. Isn't this a country where we are innocent until proven guilty?”

Other users continued to cheer the dismissal. “So happy these clowns are all getting scrubbed!” one person wrote.

Another added, “Markets will be positive tomorrow.”

An X user tweeted, “She had a chance to resign and save some dignity. Now she's fired AND she will be indicted!”

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