President Trump Dismisses Fed Governor Lisa Cook in Unprecedented Central Bank Move
In a move that has no precedent, President Donald Trump made a public announcement on Monday that he has dismissed Federal Reserve Governor Lisa Cook, who is the first Black woman to have served on the Fed board. The termination letter, which was shared on Trump’s Truth Social, mentioned allegations of mortgage fraud made by Director William Pulte of the Federal Housing Finance Agency.
Lisa Cook, whose term was supposed to continue until 2038, responded with defiance. She stated, “President Trump has no authority to remove Federal Reserve Governor Lisa Cook.” Her legal representative, the well-known lawyer Abbe Lowell, declared that they are planning to file a lawsuit to challenge what he referred to as “this illegal action.”
This dismissal marks the first occurrence of a president removing a central bank governor in the 111-year history of the Federal Reserve, which has raised serious questions about the independence of the Fed. The markets showed a mixed response. Some analysts viewed Cook’s dismissal as potentially positive due to her dovish stance on interest rates, while others expressed concern about the precedent this sets for the autonomy of the central bank.
Source: https://www.cnn.com/2025/08/25/business/trump-fire-fed-governor