Trump threatens to fire Federal Reserve governor Lisa Cook if she does not step down
On Wednesday, Trump urged Cook to resign after Bill Pulte, his ally and the head of the Federal Housing Finance Agency, accused her of mortgage fraud.
Cook responded to Trump’s comments Wednesday by saying she would not be “bullied” into stepping down.
“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook said in a statement.
Advertisement
“I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts,” Cook added.
Massachusetts Senator Elizabeth Warren condemned Trump’s threats on Friday, saying his attacks on Cook are unlawful and politically motivated.
“President Trump cannot illegally fire independent Fed Board members,” Warren wrote on X.
“Anyone can see he is trying to find a scapegoat for his failure to lower costs for Americans,” Warren added.
Removing Cook from the Fed’s governing board would give Trump the opportunity to appoint a replacement of his choosing.
Despite being a longtime critic of Federal Reserve chairman Jerome Powell, Warren has defended the Fed before, recently opposing Trump’s push to fire Powell over his refusal to cut interest rates as quickly as Trump wants.
Advertisement
Warren, who opposed Powell’s 2021 reappointment by former president Joe Biden, said the Fed and other banking regulators must remain independent to focus on monetary policy.
On Friday, Powell signaled rate cuts could come in the months ahead but gave no timeline, stressing caution as the Fed weighs Trump’s tariffs and their economic impacts.
Alyssa Vega can be reached at alyssa.vega@globe.com.