Trump moves to oust Fed Governor Lisa Cook

President Donald Trump moved Monday to oust Federal Reserve Governor Lisa Cook after allegations surfaced that she falsified mortgage documents, marking a sharp escalation in his push to control the central bank.

In a letter posted on Truth Social, Trump said Cook’s alleged false statements on mortgage loans gave him “sufficient cause” to remove her. Cook, appointed by former President Joe Biden in 2022, is the first Black woman to serve on the Fed Board, with a term running until 2038.

Impact on the Fed and markets
The move could hand Trump a four-member majority on the seven-seat board, a step critics say undermines Fed independence.

Financial markets reacted negatively, with the Bloomberg Dollar Index, Treasury yields, and S&P 500 futures slipping.

While no charges have been filed, the Justice Department signaled it may investigate. 

Political reactions
Democrats quickly pushed back, with Senator Elizabeth Warren calling the ouster “illegal” and an “authoritarian power grab.”