Trump fires Fed governor Lisa Cook, opening new front in fight for control over central bank
By CHRIS RUGABER WASHINGTON AP President Donald Trump fired Federal Reserve Governor Lisa Cook late Monday a sharp escalation in his battle to exert greater control over what has long been considered an institution independent from day-to-day politics Related Articles Trump honors fallen US arrangement members and criticizes Biden to mark Afghanistan bombing anniversary New top admiral takes over the US Navy amid military firings Maine clinics denied Medicaid funds during lawsuit after Trump cuts to abortion providers House committee subpoenas Epstein s estate for documents including birthday book and contacts What to know about cashless bail after Trump s executive order Trump announced in a letter posted on his Truth Social platform that he is firing Cook because of claims that she committed mortgage fraud Bill Pulte a Trump appointee to the agency that regulates mortgage giants Fannie Mae and Freddie Mac made the accusations last week Pulte alleged that Cook had claimed two primary residences in Ann Arbor Michigan and Atlanta in to get better mortgage terms Mortgage rates are often higher on second homes or those purchased to rent The announcement came days after Cook explained she wouldn t leave her post despite Trump previously calling for her to resign The Fed s board has seven members meaning Trump s move could have deep economic and political ramifications Trump stated in announcing the move that he had the constitutional authority to remove Cook but doing so will raise questions about control of the Fed as an independent entity The firing is likely to touch off a legal battle and Cook could be allowed to remain in her seat while the affair plays out Cook would have to fight the legal battle herself as the injured party rather than the Fed FILE Federal Reserve Board of Governors member Lisa Cook right talks with Federal Reserve Chairman Jerome Powell before an open meeting of the Board of Governors at the Federal Reserve June in Washington AP Photo Mark Schiefelbein File It is the latest effort by the administration to take control over one of the sparse remaining independent agencies in Washington Trump has repeatedly attacked the Fed s chair Jerome Powell for not cutting its short-term interest rate and even threatened to fire him Forcing Cook off the Fed s governing board would provide Trump an opportunity to appoint a loyalist Trump has revealed he would only appoint agents who would aid cutting rates