Federal Reserve Governor Lisa Cook is refusing to leave her post after President Trump fired her on Monday over allegations of mortgage fraud.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in a statement shared by her attorneys. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
In a letter on Monday, which came days after Trump pressured her to resign, the president said she was removed from her position, effective immediately.
BREAKING: Pres. Trump fires Federal Reserve Governor Lisa Cook pic.twitter.com/Yha0V3IE0C
— Breaking911 (@Breaking911) August 26, 2025
Trump cited his authority under the Constitution and the Federal Reserve Act of 1913 as justifications for his decision to remove Cook. The Federal Reserve Act establishes the president’s ability to remove governors from the board "for cause." The president said in his letter that there was "sufficient reason" to think Cook "made false statements on one or more mortgage agreements."
The president also said he had "determined that faithfully enacting the law requires your immediate removal from office."
The allegations stem from Bill Pulte, a Trump appointee to an agency that regulates Fannie Mae and Freddie Mac. Pulte accused Cook of claiming two primary residences, one in Ann Arbor and another in Atlanta in 2021 with the goal of getting better mortgage terms. (Fox Business)
Democrats have blasted the president’s decision to remove her, but Pulte says Trump has "ample cause" to fire Cook.
"We will go where mortgage fraud is," he told "Mornings with Maria." "If mortgage fraud is with Republican or Democrat, it doesn't matter if you commit mortgage fraud in President Trump's America, we're going to come after you. And Lisa Cook is no exception to that."
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