Who is Lisa Cook? The Fed Governor fired by President Trump
Trump fires Fed Governor Lisa Cook, sparking legal debate over presidential authority. Cook denies wrongdoing; courts may decide her fate.
On Monday, August 25, President Donald Trump posted a letter on Truth Social addressed to Lisa Cook, a member of the Federal Reserve Board of Governors, informing her that she had been fired effective immediately. The move marks the first time a sitting president has attempted to remove a Fed Governor for cause.
The White House accuses Cook of making false statements on mortgage applications, specifically claiming two properties as her primary residence based on documents filed in 2021. However, Cook has not been charged with or convicted of any crime.
In a statement issued by the Fed, Cook denied any wrongdoing and rejected the claims made by administration officials. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” said Cook.
Cook was nominated by President Joe Biden and confirmed by the Senate in 2023 to serve a 14-year term. This appointment came after she had been nominated to serve out an unexpired term on the Board of Governors, which was slated to end in January 2024.
Does Trump have the authority to fire Cook?
Critics argue that President Trump may not have the legal authority to remove Lisa Cook. Under the Federal Reserve Act, governors can only be removed “for cause,” which typically requires clear evidence of misconduct or neglect of duty. Since no Fed Governor has ever been removed by a president before, the constitutionality of Cook’s dismissal is likely to be decided by the judicial branch.
In his letter, the president cited the Federal Reserve Act of 1913, which limits presidential power to dismiss Fed officials without cause. However, because there is no legal precedent defining what Congress intended by “cause,” the White House’s decision is open to legal challenge.
The move to fire Lisa Cook follows months of criticism from President Trump directed at Fed Chair Jerome Powell, whom he has repeatedly suggested he would like to see step down or be removed. The president has expressed frustration with the Fed’s monetary policy, particularly its decision not to lower interest rates. Trump is reportedly seeking to install loyalists on the Board of Governors—a move that, while potentially advancing his personal agenda, could undermine the institution’s credibility and destabilize financial markets.
Who is Lisa Cook?
She holds a PhD in Economics from UC Berkeley and has taught at Harvard University and Michigan State University. Her confirmation was contentious, with Republicans labeling her a left-wing extremist. The vote passed along party lines, with then-Vice President Kamala Harris casting the tie-breaking vote.
Before being named to the Fed, Cook taught at Harvard University and Michigan State University. The economist also served as a research associate at the National Bureau of Economic Research. Much of her research has been focused on international economics.
Cook also served as the director of the American Economic Association Summer Program and as president of the National Economic Association.
In addition to her work at the Fed, she also worked in government during the Obama adminstration, after being named to serve on the White House Council of Economic Advisors.
Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.
Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.