Fed Board member fired over possible mortgage fraud

US President Donald Trump on Monday said he had fired Federal Reserve Board Governor Lisa Cook, an unprecedented and dramatic escalation of his attacks on the US central bank’s independence over its refusal to cut interest rates, Report informs via CNBC.

Trump, in a termination letter to Cook posted on Truth Social, cited allegations by Federal Housing Finance Agency Director Bill Pulte that she had made false statements on applications for home mortgages.

The letter came four days after the Department of Justice said it would investigate Cook because of Pulte’s claim.

Cook, in a statement Monday, said, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so.”

“I will not resign,” said Cook, who is the first Black woman to serve as a Fed governor. “I will continue to carry out my duties to help the American economy as I have been doing since 2022.”

Cook, who was appointed by former President Joe Biden, has hired the high-profile attorney Abbe Lowell to represent her. She has not been charged with any crime.

Lowell, in a statement, said, “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.”

“We will take whatever actions are needed to prevent his attempted illegal action,” Lowell said.