Newly confirmed Board of Governors member Lisa Cook is embroiled in a pretty intense public spat with former President Donald Trump. This continuing saga brings together the worlds of politics and the Federal Reserve. Trump has publicly accused Cook of mortgage fraud. He alleged that she filed false primary residence disclosures on two different occasions. Cook is already helping to create U.S. monetary policy. Even in the face of this baseless accusation, she has served in this crucial role since 2022.
The uproar didn’t really start until Trump himself weighed in on social media. To direct Cook’s immediate removal, he claimed, on the basis of the fraud allegations. As Trump said in his Truth, “You should’ve known when you entered your initial pledge that when you entered your second one that there was no possible way that you were going to be keeping them both.” Cook vehemently denies these allegations, maintaining that she has done nothing wrong.
Cook signed two documents in under two weeks, each one asserting the opposite home in different states was her primary residence. Against Trump’s endless accusations, she has countered by saying that the allegations against her are without merit. Cook insists that what she did was legal and appropriate.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” – Lisa Cook
Despite the baited directive from Trump, Cook refuses to bend. But she signaled—as clearly as one can—that she has no plans to resign from her perch at the Federal Reserve. Her initial term goes through 2038. Cook was adamant, “I’m not going to resign.” She reiterated her determination to keep doing her job and helping sustain the American economy—something she’s done since 2022.
Indeed, Cook’s attorney, former House Minority Leader Abbe David Lowell, has been singing from her hymnal. In the latest round, he lambasted Trump’s approach, claiming that the former president doesn’t have the right authority to fire Cook from her post. Now President Trump is back on social media, turning his platform to work again to ‘fire by tweet’. Lowell’s bully-like tactics are wrong-headed, and his demands lack any process, foundation or legal authority.
Lowell further promised us that they will fight against Trump’s actions tooth-and-nail. We all have a duty to do whatever is necessary to stop his illegal action before it even goes into effect,” he continued.
The Federal Reserve Board, of which Cook is a member, is responsible for making some of the most important U.S. monetary policy decisions. She is one of only seven governors directly responsible for stabilizing rising prices while keeping unemployment low through interest rate decisions. Over the last few months, she’s voted with her fellow board members to maintain interest rates at record low levels in light of economic instability.
The conflict between Cook and Trump certainly brings into relief continuing hostility between the branches of government and central bank policy makers. Trump’s attempts to influence Fed leadership could have significant implications for monetary policy and economic stability in the United States.
Cook’s dedication to her office is equally steadfast in spite of the political firestorm that’s engulfed her. She has pledged to do what’s right for the American economy. Her passion and commitment are evident as she sweats the small stuff on the Board of Governors.