US President Donald Trump has ordered the removal of Federal Reserve Governor Lisa Cook amid mortgage fraud allegations.
According to Al Jazeera, in a letter posted by the Republican president on social media on Monday, August 25, announcing the immediate removal of Cook under the US Constitution and the 1913 Federal Reserve Act.
The letter shared on Truth Social read, “The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks. The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve.”
“In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity. At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator,” he added.
The orders came after the 79-year-old warned to fire Cook, one of the seven members of the Federal Board of Governors.
Trump cited that the former Michigan State University professor was removed due to allegations of mortgage fraud. The decision has raised questions on the independence of the central bank.
Cook, who is also the first Black woman of the Federal Reserve Board of Governors in the central bank's 111-year history, was appointed by the former US President Joe Biden until 2038.
It is worth noting that Cook’s exit would give Trump an opportunity to appoint a replacement that would ultimately give him more influence over Federal Reserve policy.
