Trump Seeks Removal of Fed Governor Lisa Cook Amid Fraud Allegations

President Donald Trump is attempting to remove Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, which she and her legal team strongly contest, arguing the president lacks legal authority to fire her. Cook, the first Black woman on the Fed board, has hired prominent attorney Abbe Lowell to fight her ouster, with the dispute potentially reaching the Supreme Court. Commerce Secretary Howard Lutnick supported Trump's stance, emphasizing the need for accountability if fraud occurred, while Democrats and experts warn that this effort risks politicizing the Federal Reserve and undermining its independence. Legal experts highlight that Fed governors can only be removed 'for cause,' typically related to misconduct while in office, and since Cook has not been charged or convicted, Trump's firing attempt faces significant legal obstacles. The controversy exposes broader concerns about the erosion of independent institutions, with critics accusing Trump of seeking authoritarian control over the Fed and calling on institutional leaders to resist enabling such overreach. Meanwhile, betting markets and legal analysts remain skeptical about Trump's ability to successfully remove Cook under current laws.