‘Sufficient Cause To Remove You’: Trump Fires Federal Reserve Governor
President Donald Trump withdrew Lisa Cook on Monday, governor of the federal reserve, with an immediately effect.
Trump on Wednesday, Trump called for the resignation of Cook after the federal director of the housing financing agency, Bill Pulte, said that he returned her to the Ministry of Justice (DoJ) for allegations of mortgage fraud. In a letter published on X, Trump said that he was exercising his authority under the Federal Reserve Act, alleging that Cook had signed documents claiming the residence in two different states. (Related: Jerome Powell Nourris signals could soon reduce interest rates)
“For example, as detailed in the criminal reference, you have signed a document attesting that a property in Michigan would be your main residence for next year. Two weeks later, you signed another document for a property in Georgia declaring that it would be your main residence for next year.
The president of the American federal reserve Jerome Powell is expressed with Lisa Cook, member of the Council of Governors of the Federal Reserve. (Photo of Saul Loeb / AFP via Getty Images)
“The federal reserve has a huge responsibility to set interest rates and regulate reserve banks and members. The American people must be able to have total confidence in the honesty of the members responsible for defining the policy and supervising the federal reserve,” added Trump. “In the light of your misleading and potentially criminal conduct in financial matters, they cannot and I do not have such confidence in your integrity.
Cook was appointed to the Council of Governors of the Federal Reserve in 2022 by former President Joe Biden, would have recommended the recommendation of the Ohio Senator at the time, Sherrod Brown. The allegations of mortgage fraud against it are not the first of its kind, because the Doj also investigates the Democratic Senator of California Adam Schiff for similar allegations.
Tensions between Trump and the Federal Reserve had increased in the months because Trump has repeatedly called the president of the Fed, Jerome Powell, to reduce interest rates.
Since Trump’s announcement to bring the reciprocal prices against a handful of countries, Powell has expressed concerns about the uncertainty they could cause. On July 1, Powell told a panel that the American central bank would have now lowered the prices if Trump had not imposed the prices.
In July, Florida Republican representative Anna Paulina Luna said that she was referring to Powell at Doj to investigate an alleged perjury linked to the renovation project of more than $ 2 billion from the Fed. This decision comes after calls for Powell to be the subject of an investigation began the same month, Pulte calling for congress to launch the investigation.
Powell’s mandate should continue until May 15. He said on several occasions that he would not retire earlier, according to Reuters.
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