US President Donald Trump announced that he has dismissed Ms. Lisa Cook, a member of the Board of Governors of the Federal Reserve (Fed), after allegations related to mortgage fraud.
In the announcement posted on the social network Truth Social, Mr. Trump cited the authority under Article II of the US Constitution and the 2023 Federal Reserve Act to decide the dismissal to take effect immediately. He said that the American people need to ensure absolute trust in Fed members - the agency responsible for setting interest rates, managing reserves and coordinating with member banks.
Mr. Trump emphasized: Faced with dishonest and possibly illegal behavior, they cant, and I cant put my trust in you. That shows a serious bottleneck in financial transactions, raising doubts about her ability".
The origin of the allegations began with a petition for prosecution sent by the Director of the Federal Housing Finance Agency (FHFA), Mr. Bill Pulte, to Attorney General Pam Bondi on August 15. pulte said Cook had stated her residence address at an apartment in Atlanta, while she had previously borrowed money to buy a home in Michigan as collateral and confirmed that it was her primary residence. He also affirmed that FHFA has documents proving this " mortgage fraud".
Cook has not responded after the dismissal notice. Previously, on August 21, she said she had no intention of resigning just because of "questions on social media". She affirmed that she will seriously consider any issues related to personal financial history and is collecting information to answer accurately.
The Fed Board of Governors has seven members, each with a 14-year term, appointed by the President and confirmed by the Senate. Cook is one of three governors appointed by former President Joe Biden, while Trump has chosen two others. With Cook sacked, Trump has the opportunity to add new personnel and shape a majority of the Fed Board of Governors based on his views on monetary policy.
