🚨 Breaking news: Trump fires Federal Reserve Governor, Lisa Cook, in a historic decision.
In an unprecedented escalation, President Donald Trump officially fired Federal Reserve Governor, Lisa D. Cook, citing "sufficient cause" under the Federal Reserve Act and allegations of mortgage fraud.
🪙 A letter from the White House signed by Trump, dated today, declares the "immediate removal" of Cook from her position on the Board of Governors of the Federal Reserve, marking the first time in U.S. history that an acting president has directly removed a Federal Reserve governor.
The letter accuses Cook of false statements on mortgage applications, including declaring two different properties as her "primary residence" within a few weeks of each other. Trump criticized her conduct as "deceptive and potentially criminal," and wrote that it demonstrates "gross negligence in financial transactions that calls into question her competence and reliability as a financial regulator."
Trump justified the firing based on his constitutional authority, stating:
"The executive power of the United States is vested in me as President… I have determined that the faithful execution of the law requires your immediate removal from office."
⚖️ Why this matters
The first presidential removal of a Federal Reserve governor, a move that will almost certainly trigger a constitutional battle over the independence of the central bank.
A legal showdown is expected. Experts say that Cook is likely to challenge the firing, arguing that Federal Reserve governors can only be removed for demonstrated misconduct, not at the presidential whim.
⚠️ Historic. Explosive. Legally uncharted.
Trump has just detonated the biggest political challenge to the independence of the Federal Reserve in over a century.
