Trump Fires First Black Federal Reserve Governor Over Mortgage Allegations

President Donald Trump announced the firing of Federal Reserve Board Governor Lisa Cook, the first Black woman to serve on the Fed, citing allegations of mortgage fraud related to loan documents where she allegedly misrepresented primary residence status to obtain favorable terms. Trump posted a termination letter on his social media platform, Truth Social, claiming he had "sufficient cause" for removal, a move that legal experts and Cook's attorney have challenged as lacking legal authority under the Federal Reserve Act, which allows governors to be removed only for cause and has never before been tested by a presidential firing. Cook vehemently denied the allegations, stating she will not resign and will continue her duties while taking any financial questions seriously. The accusations originated from Bill Pulte, director of the Federal Housing Finance Agency and Trump ally, who referred Cook to the Justice Department for investigation. Cook has retained lawyer Abbe Lowell to contest the firing, emphasizing the absence of due process and legal basis. This unprecedented action by Trump raises significant questions about the limits of presidential power over the Federal Reserve's independent governance.