President Donald Trump has once again made history, and as he has in the past, I am sure this latest move will spark some fireworks on the left side of the aisle.
Trump has just removed Federal Reserve Governor Lisa Cook, who is facing allegations of mortgage fraud.
This is the first time in history that a president has fired a governor of the Federal Reserve.
Trump was at war with Federal Reserve chair Jerome Powell long before he even reclaimed the White House in January.
The president has been calling out the Fed for not acting quickly enough in terms of lowering federal interest rates, and he continues to cite high rates as the reason the economy is not gaining the momentum he promised on the campaign trail.
Trump has repeatedly called on Powell to lower the rates, even demanding that the board step in and take control of the situation.
Trump recently posted, “THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”
Trump has often threatened to fire Powell for not lowering rates, but the president also knows that the matter would be litigated and likely not concluded until well after Powell’s term is scheduled to end next year.
The president has, therefore, resorted to public threats against Powell, often calling for his resignation.
If and when Powell does finally step down (he will likely finish his full term), Trump says he already has people in mind for the position.
He recently stated, "I have two or three top choices. I know within three or four people who I’m going to pick."
Federal Reserve Governor Lisa Cook is now facing allegations of mortgage fraud, very similar to those recently made against New York Attorney General Letitia James and Sen. Adam Schiff (D-CA).
Trump has been looking for a reason to remove board members so that his allies can take charge, and he just found one. On Monday, Trump announced he is moving forward with Cook's dismissal.
Trump stated, "As set forth in the Criminal Referral dated August 15, 2025, from Mr. William J. Pulte, Director of the Federal Housing Finance Agency, to Ms. Pamela Bondi, Attorney General of the United States…there is sufficient reason to believe you may have made false statements on one or more mortgage agreements.”
No sitting president has ever removed a Federal Reserve governor, and if Cook does not fight the move, I am sure that Democrats will. While Trump has made his intentions clear, this issue is far from settled, and likely won’t be for some time. To this point, Cook has not even been charged with a crime, so the theme will be that Trump did not allow for due process or even an indictment to come down.
