Departure of Cook, first Black woman to sit on central bank’s board, will allow US president to tap replacement
Donald Trump has fired Federal Reserve governor Lisa Cook over allegations she committed mortgage fraud, the latest escalation in the US president’s attack on the central bank’s independence.
Cook’s exit will allow Trump to tap a replacement, helping him to exert more control over Fed policy. His demands for lower interest rates have so far fallen on deaf ears.
The Trump administration has pursued several of the president’s political enemies, including the New York attorney general, Letitia James, and the California senator Adam Schiff, over claims of mortgage fraud. Both James and Schiff denied the allegations.
Cook is not a politician, but is among a string of senior Fed policymakers who have defied Trump’s persistent calls for rate cuts. Appointed by Joe Biden in May 2022, she became the first Black woman to sit on the central bank’s board. Her term on the Fed’s board was not due to end until 2038.
