Trump Moves to Fire Federal Reserve Governor, But She Says He Can’t

President Donald Trump claims to have fired Federal Reserve Gov. Lisa Cook, but she begs to differ.

“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” said Cook in a statement Monday. “I will not resign.”

As governor, Cook is one of six board members who play a major role in implementing monetary policy in the United States. Trump has repeatedly criticized the Federal Reserve for not cutting interest rates, which he argues hampers economic growth.

Last week, Trump called for Cook to resign, citing allegations from Bill Pulte, the director of the Federal Housing Finance Agency, that she had improperly listed two primary residences. 

On Monday, Trump moved to make her ouster official, penning a letter to Cook announcing her dismissal, which he posted on the social media platform Truth Social.

“You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” he wrote Cook. “At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”

Governors are confirmed by the Senate for 14-year terms. Cook, who was reappointed in February 2024, would reach the end of her term in January 2038 if allowed to remain.

Cook’s lawyer, Abbe Lowell, fired back at Trump with strident language in a statement Monday.

“President Trump has taken to social media to once again ‘fire by tweet’ and once again his reflex to bully is flawed and his demands lack any proper process, basis or legal authority,” he said. “We will take whatever actions are needed to prevent his attempted illegal action.”

Lowell, a Washington-based lawyer, has represented clients such as former Sen. Bob Menendez, D-N.J., Jared Kushner, and Hunter Biden.