Trump's Latest Threat: Can He Fire Federal Reserve Governor Lisa Cook?

Federal Reserve Governor Lisa Cook has hit back at President Trump's renewed threat to fire her from the central bank's governing board. In a letter dated August 26, 2026, Cook's attorneys argued that there is no legal basis for Trump to remove her.

The Trump administration had previously accused Cook of committing mortgage fraud, which she denies. The Supreme Court ruled last year that Cook could remain in her position while the case was litigated. However, if Trump were able to fire her, he could name a replacement and gain a majority on the Fed's board with his appointees.

Cook has maintained that any errors in her mortgage applications were unintentional and did not rise to the level of fraud. Her attorneys stated that 'an inadvertent error is not fraud' and that Trump's attacks are an attempt to force the Federal Reserve to bend to his will.