United President Donald Trump has ordered the removal of Federal Reserve governor Lisa Cook amid unproven claims of mortgage fraud, an unprecedented move that immediately raised fears for the central bank’s independence.
In a letter posted on social media on Monday night, Trump said Cook, one of the seven members of the Fed’s Board of Governors, was being sacked “effective immediately” in accordance with his powers under the US Constitution and the 1913 Federal Reserve Act.
Citing claims aired last week by US federal mortgage regulator, Trump said there was “sufficient reason to believe you may have made false statements on one or more mortgage agreements”.
“The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and members banks,” Trump said in the letter, which was shared on his platform Truth Social.
“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 that issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator,” Trump added.
Trump had on Friday threatened to fire Cook, a former Michigan State University professor who was appointed by former President Joe Biden, if she did not resign.
In response to inquiries by media, a spokesperson for the Federal Reserve said the bank had no comment at the moment but would “keep you posted”.
Trump’s extraordinary move is set to raise further questions about the independence of the US central bank, which has been under intense pressure from the president to lower interest rates.
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