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Fed governor Lisa Cook slams Trump's renewed threat to fire her
AP News • • general
Key Points:
- Federal Reserve governor Lisa Cook stated that the Trump administration lacks legal grounds to remove her from the Fed's governing board, responding to renewed firing threats.
- Trump initially sought to fire Cook a year ago over unproven mortgage fraud allegations, which she denies, and the Supreme Court allowed her to remain during litigation.
- Cook's attorneys argued the accusations stem from an inadvertent paperwork error, not fraud, and claimed the firing attempts are politically motivated to pressure the Federal Reserve.
- The controversy involves Cook allegedly declaring two homes as primary residences on mortgage applications, which she says was unintentional and not deceptive.
- If Trump succeeds in removing Cook, he could appoint a replacement, potentially shifting the Fed board majority in his favor amid his criticism of the Fed's interest rate policies.
