Trump fires Federal Reserve Governor Lisa Cook, sparking independence concerns

President Donald Trump on Monday said he would be taking an unprecedented move to remove Federal Reserve Governor Lisa Cook from her position.

Trump shared the letter written to Cook online Monday evening, following through on a previous threat to fire her if she refused to resign.

“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,” Trump’s letter said.

Trump’s decision to remove Cook came after members of his administration said there was reason to believe she made false statements on “one or more mortgage agreements.”

Trump argued that Cook signed one document attesting to a property in Michigan, which would be her primary residence, but two weeks later, signed another document for a property in Georgia, which stated it would be her primary residence.

“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,” Trump wrote.

The move to oust Cook has sparked concerns about the independence of the Federal Reserve and sets the stage for a legal battle.

According to The New York Times, Cook released a statement through her lawyer that “no cause exists under the law” for Trump to fire her. Cook’s lawyer said they would be taking “whatever actions are needed” to prevent Cook from being fired.

It comes after Trump has long railed on Federal Reserve Chair Jerome Powell, who he was frustrated with for not cutting interest rates. Powell’s term is set to expire next year, and with Cook’s ousting, it could give Trump the chance to shape the Federal Reserve to his liking.

Trump argued the Federal Reserve has a “tremendous responsibility” for setting interest rates and the American people should be able to have “full confidence” in its members.

“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,” he wrote. “At a minimum the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”

As it stands, Cook has not been charged with a crime, just removed from her position. The allegations stemmed from Bill Pulte, the director of the Federal Housing Finance Agency, who referred his findings about Cook’s mortgage statements to the Department of Justice, which opened a criminal investigation, the Times reported.

Democrats came to Cook’s defense Monday evening after Trump shared his letter.

“Dr. Lisa Cook is the first Black woman ever to serve on the Federal Reserve Board of Governors. Donald Trump is trying to remove her without a shred of credible evidence that she has done anything wrong,” House Minority Leader Hakeem Jeffries, D-N.Y., said in a statement. “To the extent anyone is unfit to serve in a position of responsibility because of deceitful and potentially criminal conduct, it is the current occupant of the White House.”