President Donald Trump on Monday removed Dr. Lisa D. Cook from her position on the Board of Governors of the United States Federal Reserve, citing alleged false statements on mortgage documents and loss of public trust.
Cooks was appointed by then-President Joe Biden in 2022. She is the first African American woman to serve in the role.
In a formal letter dated August 25, 2025, Trump invoked his authority under Article II of the U.S. Constitution and the Federal Reserve Act of 1913, declaring Cook’s removal “effective immediately.”
According to the letter, the decision followed a criminal referral submitted on August 15, 2025, by William J. Pulte, Director of the Federal Housing Finance Agency, to U.S. Attorney General Pamela Bondi.
The referral alleged that Cook signed conflicting mortgage agreements—one in Michigan and another in Georgia—each claiming to be for her primary residence within overlapping timeframes.
Trump argued that the alleged actions demonstrated gross negligence in financial transactions and undermined Cook’s integrity and competence as a financial regulator.
The statement read, “Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.
“The Federal Reserve Act provides that you may be removed, at my discretion, for cause. See 12 U.S.C. § 242. I have determined that there is sufficient cause to remove you from your position.
“As set forth in the Criminal Referral dated August 15, 2025, from Mr. William J. Pulte, Director of the Federal Housing Finance Agency, to Ms. Pamela Bondi, Attorney General of the United States (“Criminal Referral”) (attached to this letter as Exhibit A), there is sufficient reason to believe you may have made false statements on one or more mortgage agreements.
“For example, as detailed in the Criminal Referral, you signed one document attesting that a property in Michigan would be your primary residence for the next year. Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year. It is inconceivable that you were not aware of your first commitment when making the second. It is impossible that you intended to honor both.”
“The executive power of the United States is vested in me as President and, as President, I have a solemn duty to ensure that the laws of the United States are faithfully executed. I have determined that faithfully executing the law requires your immediate removal from office,” the statement added.
But Cook insisted the president lacked the authority to dismiss her and vowed not to resign, setting the stage for what could become a landmark legal battle over presidential power and the Federal Reserve’s independence.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”