Trump Fires Fed Governor Lisa Cook Over Mortgage Fraud Allegations

President Donald Trump has removed Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud brought forth by Federal Housing Finance Agency director Bill Pulte. Trump invoked his authority under Article II of the Constitution and the Federal Reserve Act of 1913 to dismiss Cook effective immediately, a move seen as an attempt to increase White House influence over the Fed. Cook, the first Black woman on the Federal Reserve board whose term was set to expire in 2038, denies the allegations and has stated she will not be bullied into resignation. The situation highlights rising tensions between the White House and the Federal Reserve amid pressure to lower interest rates, with Trump previously criticizing Fed Chair Jerome Powell. Cook's removal opens another vacancy on the board, following the recent resignation of another Fed official, potentially allowing Trump to shape the central bank's leadership further. The White House claims legal grounds for the firing based on criminal referrals, but the action raises concerns about the Fed's political independence.