US President Donald Trump said on Monday that he is firing Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud.
The announcement, made through his Truth Social platform, marks an extraordinary attempt to exert presidential control over the central bank, which has long been regarded as independent.
Trump claimed Cook improperly signed mortgage contracts for two different homes as primary residences within weeks of each other.
He described the actions as deceptive financial conduct that damaged public trust in her ability to serve on the Federal Reserve Board. He declared her removal effective immediately.
Cook rejected the decision hours later, saying she would not leave her post.
Through her attorney Abbe Lowell, she argued that the president lacks the legal power to dismiss a Fed governor, insisting that her removal “for cause” is not permitted under the Federal Reserve Act.
The allegations against Cook first surfaced last week from Bill Pulte, a Trump appointee to a mortgage oversight agency.
The clash sets up a likely court battle that could decide whether presidents have authority to oust Fed governors, a question that has never been tested in US law.
With the Federal Reserve scheduled to hold a policy meeting on September 16–17, the dispute threatens to cast uncertainty over its independence at a critical moment for monetary policy.