President Trump announced late Monday that he had removed Federal Reserve Governor Lisa Cook, according to the BBC. Trump cited alleged false statements on mortgage documents and claimed constitutional authority to act. Cook rejected the decision, saying Trump has no legal power to dismiss her, and vowed to continue in her role. The move is unprecedented in modern U.S. history and likely to trigger legal challenges, raising questions over the Fed’s independence. Lisa Cook was appointed by Joe Biden in 2022 and is one of seven governors and sits on the 12-member committee that sets U.S. interest rates. At the July meeting, she voted with Chair Jerome Powell and most members to keep rates unchanged. Trump has repeatedly pressured Powell to deliver rapid rate cuts.
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