Washington (USA), Aug 26 (LaPresse) – US President Donald Trump has removed Lisa Cook from the Federal Reserve Board of Governors. The announcement came via a letter posted on his social platform Truth, stating that the dismissal was due to allegations of mortgage fraud against Cook. Bill Pulte, appointed by Trump to the agency regulating mortgage giants Fannie Mae and Freddie Mac, accused Cook last week of claiming two primary residences in 2021—one in Ann Arbor, Michigan, and the other in Atlanta—to obtain more favorable mortgage terms. Mortgage rates are often higher on second homes or rental properties.
Cook had stated Monday evening she would not resign despite Trump’s request. The Fed board has seven members, meaning Trump’s move could have significant economic and political repercussions. This decision marks a major escalation in Trump’s efforts to exert greater control over what has long been seen as an independent institution. Trump claims he has constitutional authority to remove Cook, but the decision raises questions about Fed’s independence. The dismissal could lead to a legal battle, and Cook might be allowed to remain in office during proceedings.