Click here: to donate by Credit Card
Or here: to donate by PayPal
Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794
Thank you very much and God bless you.
Posted on 08/26/2025 6:13:53 AM PDT by Red Badger
Key Points
President Donald Trump said he is removing Federal Reserve Board Governor Lisa Cook from her position.
Trump said there is sufficient reason to believe Cook made “false statements” on one or more mortgage agreements.
“I will not resign,” said Cook, who hired high-profile attorney Abbe Lowell to challenge her purported termination.
Trump has complained for months that Fed Chairman Jerome Powell has not lowered interest rates.
===============================================================
President Donald Trump on Monday said he had fired Federal Reserve Board Governor Lisa Cook, an unprecedented and dramatic escalation of his attacks on the U.S. central bank’s independence over its refusal to cut interest rates.
Trump, in a termination letter to Cook posted on Truth Social, cited allegations by Federal Housing Finance Agency Director Bill Pulte that she had made false statements on applications for home mortgages.
The letter came four days after the Department of Justice said it would investigate Cook because of Pulte’s claim.
Cook, in a statement Monday, said, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so.”
“I will not resign,” said Cook, who is the first Black woman to serve as a Fed governor. “I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Cook, who was appointed by former President Joe Biden, has hired the high-profile attorney Abbe Lowell to represent her. She has not been charged with any crime.
Lowell, in a statement, said, “President Trump has taken to social media to once again ‘fire by tweet’ and once again his reflex to bully is flawed and his demands lack any proper process, basis or legal authority.”
“We will take whatever actions are needed to prevent his attempted illegal action,” Lowell said.
A spokesman for the Federal Reserve had no immediate comment on Trump’s letter.
Trump’s removal of Cook could be challenged in federal court. The Supreme Court could eventually rule on whether her firing is legal.
If it is upheld, Trump would be on track to have a Fed board whose majority is comprised of governors who he has appointed.
Congress curbed the president’s authority to unilaterally fire a Fed governor in the Federal Reserve Act of 1913, which states that the president can only do so “for cause.”
While the law does not elaborate on what constitutes “cause,” it has historically been understood to mean malfeasance or dereliction of duty.
Trump, in his letter to Cook on Monday, tied Pulte’s allegations about mortgage fraud to the public’s perception of her actions as Fed governor.
The president wrote, “There is sufficient reason to believe you have made false statements on one or more mortgage agreements.”
“For example, as detailed in the Criminal Referral, you signed one document attesting that a property in Michigan would be your primary residence for the next year,” Trump wrote.
“Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year,” he continued.
Trump claimed that it is “inconceivable” that Cook was “not aware of [her] first commitment when making the second.”
“In light of your deceitful and potentially criminal conduct in a financial matter, [the American people] cannot and I do not have such confidence in your integrity,” Trump wrote.
“At a minimum, the conduct that issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
Trump housing regulator Pulte says Fed’s Cook should resign or be fired over mortgage fraud claims Sen. Elizabeth Warren, D-Mass., in a statement Monday night, said, “The illegal attempt to fire Lisa Cook is the latest example of a desperate President searching for a scapegoat to cover for his own failure to lower costs for Americans.”
“It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court,” said Warren, who is the ranking member on the Senate Banking, Housing, and Urban Affairs Committee.
Edward Mills, managing director of the financial advisory firm Raymond James, said that Trump’s move to fire Cook “marks an unprecedented moment for both central bank independence, signaling the White House’s escalating campaign to exert direct influence over monetary policy decisions.”
“Markets are likely to view this attack on Fed independence negatively, amplifying uncertainty over future policy direction,” Mills said.
Pulte applauded Trump’s move and thanked his “commitment to stopping mortgage fraud and following the law” in a post on X.
Cook’s termination comes after months of complaints by Trump about the Federal Reserve and its chairman, Jerome Powell, for not cutting interest rates as the president has demanded they do since he returned to the White House in January.
On July 15, Trump asked a group of Republican members of Congress if he should fire Powell, and they agreed he should, according to a senior White House official. Trump said he would follow through on that.
But a day later, Trump publicly denied that he would fire Powell even as he left the door open for it to happen at some point.
“We’re not planning on doing it,” he said at the time.
“I don’t rule out anything he said. “But I think it’s highly unlikely, unless he has to leave for fraud.”
If Trump is ultimately successful in removing Cook, he will be able to nominate her successor and reshape the Fed’s governing board for the next several years. Fed governors typically serve 14-year terms.
Two of the seven current Fed governors, Christopher Waller and Michelle Bowman, are Trump appointees. Trump nominated Powell to be the chair of the Federal Reserve in 2017.
As of Monday afternoon, there were six members on the Board of Governors, including Cook, with one seat vacant after the resignation of Adriana Kugler earlier this month.
Trump has nominated Stephen Miran, chair of the Council of Economic Advisers, to fill Kugler’s seat.
If Miran is confirmed by the Senate and if Trump succeeds in removing Cook and getting her successor confirmed, it would give Trump a 4-to-3 majority of appointees on the board.
The board, along with five regional presidents who are seated on a rotating basis, makes up the Federal Open Market Committee, which sets the central bank’s key interest rate.
However, the board alone controls several other rates, including the interest paid on reserves that banks keep at the Fed.
After resisting pressure from Trump for months to lower rates, Powell last week suggested that conditions “may warrant” interest rate cuts as the Fed proceeds “carefully.”
The ICE U.S. Dollar index, which measures the greenback against a basket of major currencies, shed 0.3% in a rapid move overnight just after Trump said he had fired Cook.
The 2-year Treasury yield, a rate sensitive to Fed moves, ticked lower by 4 basis points on the move. One basis point equals 0.01%.
Stock futures were down in overnight trading before Trump’s announcement and continued to slightly move lower after it.
Gold futures were the biggest mover other than the dollar, gaining 0.3%.
— CNBC’s Jeff Cox contributed to this story.
|
|
Click here: to donate by Credit Card Or here: to donate by PayPal Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794 Thank you very much and God bless you. |
Is her fat ass as big as Letitia James’?
Pending litigation, have Federal officers remove her from her office in full view of the media.
I think her defense will be “I changed my mind” but that won’t hold up.
She needs to be charges and taken to court. Same for Schiff and Letitia.
Seems like mortgage fraud is contagious among many of our “esteemed” politicians, symptoms are greed, selfishness, and a strong feeling of being entitled to ignore the law.
She’ll resist but will lose. Signing the document to purchase and borrow against the Georgia condo two weeks after declaring a Michigan property as her primary residence was no accident and was intentional. A mortgage on a second home would not qualify for the lowest mortgage rate. She lied for personal benefit and gain. That seems to be a black and white issue without extenuating circumstances.
Change the locks to her office.
She can sit in the lobby and rant - or on the front steps with cameras.
Fired for “Cause”.
cauz she be a fattarsed thievin’ crook.
Funny how all the Watchdogs are crooks.
I read she also subsequently rented one of the properties.
Honestly, these public figures look to save a couple thousand on mortgage payments and property taxes and down payment…is it all worth committing fraud?
dats wacist
1. If you have been charged with a crime that has any remote relationship to your work, you must step down from a corporate board where you have a fiduciary responsibility.
2. Even if you are not formally charged with a crime, you cannot serve on a corporate board if you are under investigation for a civil or criminal matter that has any relationship to your work and you've asserted your Fifth Amendment rights against self-incrimination in a legal proceeding.
The reasons for these are clear. If you are shielded under the Constitution from self-incrimination in a matter related to your work, then you have an obvious conflict of interest and cannot represent another party in a fiduciary capacity.
Those are rules.
Rules do not apply to Democrats.
And especially not Black Female Democrats..............
Federal Reserve Board Governor Lisa Cook
A fraudster as Federal Reserve Board Governor ,,,
Ya, I’d say she’s not trustworthy, and she shouldn’t be anywhere near the countries finances. Of course the Mobocrats think differently.
Now she’s x-Federal Reserve Board Governor Lisa CRook.
Good riddance.
They have figured out a way to reduce interest rates for THEMSELVES!!
Being that she’s black, female, and Democrat, she likely felt she was untouchable
I’ll put my money on Donald.
The arrogance of these corrupt DEI hires is repugnant.
I think the Fed pays her paycheck, not Treasury. That will be interesting.
Someone get a forklift in there and haul out her fat ass.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.