Trump Fires Federal Reserve Board Member Accused of Mortgage Fraud - She Refuses to Leave

President Donald Trump announced the termination of Federal Reserve Board of Governors member Lisa Cook yesterday - the first time a President has ever moved to fire a member from the Board. 

The move came after Trump called on her to resign days ago amid her mortgage fraud scandal. Federal Housing Finance Agency Director Bill Pulte alleged that she had made false statements on applications for home mortgages. As the other recent cases of Letitia James and Adam Schiff have proven, (alleged) mortgage fraud is (allegedly) the crime of choice for Democrats as of late. 

The Fed’s Board of Governors has seven members, of which the Chairman of the Fed (Jerome Powell) is one. The Board currently has one vacancy, and of the six members, three were appointed by Republicans, and three by Democrats (one of the Republicans being Powell, who Trump has clashed with recently over cutting interest rates). 

Cook’s ouster would give Trump an opportunity for a 5-2 Republican majority on the Board. 

Cook’s term is set to expire January 31, 2038 - and she’s refusing to leave. 

Cook, in a statement said, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so.”

“I will not resign.” 

Cook is the only member of the Fed facing a scandal that has refused to step down in recent years. 

In 2021, Dallas Fed President Robert Steven Kaplan and Boston Fed President Eric Rosengren resigned amid controversies over suspicious stock trades - and in 2022, Fed Vice Chair Richard Clarida resigned, also amid controversy surrounding his stock trades.