#TrumpFiresFedGovernorCook
On August 26, 2025, former U.S. President Donald Trump announced the firing of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud—specifically, that she falsely declared two different homes as her primary residence to obtain favorable mortgage terms
Cook, the first Black woman to serve on the Fed’s board, has refused to resign, asserting that Trump lacks legal authority to remove her, and that no valid “cause” exists under the Federal Reserve Act
She has retained attorney Abbe Lowell to challenge the decision in court
Analysts and critics have branded the move as an “authoritarian power grab”, warning it undermines the independence of the U.S. central bank. They anticipate a protracted legal battle that could ultimately reach the Supreme Court
In financial markets, the reaction was cautious but notable: the U.S. dollar weakened, bond yields shifted (short-term yields dropped, long-term yields rose), and investors expressed concern over potential politicization of monetary policy
