Quick overview

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President Donald Trump announced that he fired Federal Reserve Governor Lisa Cook.

 

Trump posted a letter to Cook on Truth Social on Monday night, saying, “You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.”

Cook’s term is scheduled to expire in 2028, and the president had previously called for her resignation. In the letter, Trump reiterated claims that Cook had committed mortgage fraud, which his administration had made earlier this month. Cook had previously stated that she had “no intention of being bullied to step down from my position” and that she was gathering information to refute those claims. The Federal Reserve did not respond to Investopedia’s emailed inquiries in time for publication.

The Fed last month voted to maintain current rates, which he has criticized despite Trump’s calls for interest rate cuts. Fed officials were concerned that Trump’s tariff policies might boost inflation, according to the meeting’s minutes.

Fed Chair Jerome Powell—who has also come under fire from Trump—stated that a rate cut in September was possible as officials took into account the potential for a contracting labor market.

A vacancy at the Fed was filled earlier this month by the president, who appointed White House Council of Economic Advisers chair Stephen Miran to complete Fed Governor Adriana Kugler’s remaining term after Kugler resigned. The Senate has not yet confirmed Miran. Cook began his tenure in 2022 as a professor of international relations and economics at Michigan State University.