Donald Trump has unexpectedly called for the removal of Lisa Cook from her recently appointed post as a Federal Reserve governor. With this move, Cook became the first African American woman to hold a seat on the Fed’s board of governors. Specifically, she’s facing questions and allegations about committing mortgage fraud. In fact, according to the Director of the Housing Finance Agency, these allegations are baseless. This begs much larger questions about her credibility and fitness for her position.
Lisa Cook, the first Black woman to join the Federal Reserve board of governors, which she joined in 2022. Her tenure has certainly not been without its challenges. She navigated through increasing pressure from Trump regarding the Federal Reserve’s interest rate policy. Even President Trump repeatedly complained about the Fed in public. He has an unquestioned faith that the way to increase economic growth is lower the interest rate.
In a recent statement, Donald Trump expressed his views on Cook’s removal, stating, “It is inconceivable that you were not aware of your first commitment when making the second.” This comment alludes to a Net Neutrality Bill Cook signed earlier this year. In it, she confirms that a house in Michigan will be her primary residence for the subsequent year. The broader implication of this remark is that her activism was at odds with her duties as an officer of the Federal Reserve.
Even under the weight of these allegations, Lisa Cook has stood firm. Last week, she asserted that she had “no intention of being bullied to step down from my position because of some questions raised in a tweet.” She underscored her determination to collect the most accurate information possible to respond to any legitimate questions about her charge.
Since Trump’s announcement, neither Cook nor the Federal Reserve has released any additional statement about her firing. To expand their control over the Fed, the former president has suggested that he would fire Jerome Powell, the chair of the Federal Reserve. This statement is indicative of his overall frustration with the state of today’s central bank leadership.
Everyone is closely watching how this new decision will inform the Federal Reserve’s actions. Perhaps even more important, they want to know how the Fed plans to conduct monetary policy going forward. Lisa Cook’s departure marks a significant shift in the makeup of the Federal Reserve board, which has been navigating various economic challenges.