Federal Reserve Governor Lisa Cook pushed back Tuesday after President Donald Trump announced her dismissal over allegations of mortgage fraud, saying there is “no cause” for her termination under the law.
Cook’s Response: “I Will Not Resign”
Hours after Trump announced her removal, Cook issued a statement through her new attorney, Abbe Lowell — best known for representing Hunter Biden.
“President Trump purported to fire me ‘for cause’ where no cause exists under the law, and he has no authority to do so,” Cook said. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Lowell accused Trump of bypassing due process. “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,” Lowell said, adding he would take “whatever actions are needed” to block the firing.
The Allegations
Trump’s move followed a criminal referral filed by Federal Housing Finance Agency Director Bill Pulte, who accused Cook of mortgage fraud.
According to the referral, Cook simultaneously claimed a Michigan home and an Atlanta condo as her primary residence — allowing her to secure lower interest rates on both. Pulte alleged Cook later listed the Atlanta property for rent while failing to disclose rental income on federal disclosures.
Special Prosecutor Ed Martin is investigating the claims. Cook denies wrongdoing.
Political Firestorm
The episode has quickly become the latest flashpoint in Trump’s clash with the Federal Reserve. The president has pressured the Fed to cut interest rates, while Chairman Jerome Powell has resisted.
The Federal Reserve Act of 1913 states that governors serve 14-year terms “unless sooner removed for cause by the President.”
But “cause” is not defined — raising the question of whether unproven allegations like Cook’s case meet that threshold. Legal scholars expect the issue could end up before the Supreme Court.
