Trump Targets Fed Governor over Mortgage Fraud Allegations
US President Donald Trump has escalated his efforts to remove Federal Reserve Governor Lisa Cook from her position. The move is seen as highly unusual, given the independence of the central bank and the stringent conditions required for a governor's removal.
A letter dated August 5 was sent to Cook, threatening her position and accusing her of 'mortgage fraud'. The crime carries a maximum sentence of 30 years in prison, with the letter stating that her conduct has called into question her trustworthiness and reliability as a Federal Reserve governor.
Cook's nomination by President Joe Biden in 2022 was seen as a significant move towards greater diversity within the central bank. Trump had previously made similar allegations against Cook in 2025, but this latest development marks a fresh attempt to remove her from office.