Federal Reserve Governor Lisa Cook is in the spotlight after President Donald Trump announced on Monday night that he is firing her over alleged mortgage fraud. The move has sparked intense political and legal debate, as Cook has insisted that she will not resign and is planning to file a lawsuit, CNN reported Tuesday.
“I will continue to carry out my duties to help the American economy as I have been doing since 2022,” she reportedly said.
From Academia to the Fed: A Historic Appointment Under Fire
Cook made history in 2022 when she became the first Black woman appointed to the Fed board, according to The Associated Press. Nominated by then President Joe Biden, she was confirmed after a 50-50 Senate vote broken by then-Vice President Kamala Harris.
Before her appointment, Cook taught economics at the Michigan State University and held roles in the Clinton, George W Bush and Obama administrations. Her research includes the impact of racial violence on Black innovation and economic growth, the report said. Cook holds degrees from Spelman College, Oxford and UC Berkeley.
Role at the Fed
As a Fed governor, Cook serves a 14-year term and helps set US interest rates — roles that are historically designed to be politically independent, and also why Trump’s move to fire her is drawing such sharp scrutiny – it’s the first known attempt by a US president to fire a Fed governor.
The Allegations and Political Tension
The US President, while citing a letter from Federal Housing Finance Agency head and ally Bill Pulte, accused Cook of mortgage fraud for allegedly claiming two primary residences in 2021.
In his dismissal letter, Trump wrote, “The American people must have the full confidence in the honesty of the members entrusted with setting policy… I do not have that confidence.”
However, Cook’s lawyer Abbe Lowell on Tuesday appeared to push back, reportedly saying, “His (Trump’s) attempt to fire her… lacks any factual or legal basis.”
US media reports suggest that firing a Fed governor requires a “for cause” justification, and no formal process has taken place yet.
Meanwhile, Pulte has also accused other officials, including Senator Adam Schiff and New York Attorney General Letitia James, both of whom have clashed with Trump.
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