Federal Reserve’s Lisa Cook Insists She Will Not Resign From Board

Lisa Cook Rejects Trump’s Attempt to Remove Her From the Fed

Refusal to Resign

Federal Reserve Governor Lisa Cook announced that she will not step down from the Board of Governors, only hours after President Trump declared he was firing her. Cook insisted she would continue her work at the central bank, pushing back against what she and her lawyers argue is an unlawful dismissal.

Trump’s Unprecedented Move

Earlier on Monday, Trump issued a statement saying he was removing Cook from her position effective immediately. He cited allegations that she falsified records to secure better mortgage terms. Despite the accusations, Cook has not been charged or convicted of any crime.

Cook’s Response and Legal Pushback

In a statement released through her attorney, Abbe David Lowell, Cook firmly rejected Trump’s decision. “I will not resign,” she said. “I will continue to serve the American economy as I have since 2022.” Lowell added that they would take all necessary legal action to block what they described as the president’s “illegal attempt.”

Appointment and Term Length

Cook initially joined the Federal Reserve to complete an unfinished term before being reappointed in 2023. Her current term runs until January 2038, giving her a rare long tenure on the central bank’s board.

Legal and Institutional Concerns

Trump invoked a clause in the Federal Reserve Act allowing presidents to dismiss board members “for cause.” His justification—that mortgage fraud allegations damaged Cook’s credibility—has been labeled questionable and potentially harmful to the Fed’s independence.

Broader Political Context

The firing is part of Trump’s wider campaign to reshape the Federal Reserve. He has long criticized the central bank and pressured its members to lower interest rates. While his attacks previously centered on Fed Chair Jerome Powell, Trump’s focus recently shifted to Cook.

Allegations and Political Pressure

The controversy intensified after Bill Pulte, head of the Federal Housing Finance Agency, accused Cook of falsifying mortgage records and claimed the case had been referred to the Justice Department. These accusations provided the basis for Trump’s move, though their legal weight remains uncertain.

A Historic Appointment

Lisa Cook, confirmed by the Senate in 2022, made history as the first Black woman to serve on the Federal Reserve Board. Her potential removal could set a major precedent for the political independence of the central bank and is expected to face strong legal challenges.