You Don’t Have the Authority, I Will Not Resign’: Fed Governor Lisa Cook Defies Trump’s Firing Attempt

Right now, there is a major conflict between former President Donald Trump and Federal Reserve Governor Lisa Cook. Trump recently announced that he was firing Lisa Cook, but she is refusing to leave her position. This clash is serious because it raises big questions about the independence of the Federal Reserve and the limits of presidential power.

Trump posted a letter on his social media platform, Truth Social, saying that Cook was “removed effective immediately.” He claimed that she had committed mortgage fraud, accusing her of listing two primary residences in 2021 so she could get better loan terms. The accusation came from Bill Pulte, a supporter of Trump, but there has been no proper investigation or evidence to prove this claim.

Lisa Cook responded firmly. She said that Trump has no authority to fire her and that the reasons he gave do not legally count. “President Trump tried to remove me for a reason that is not valid under the law, and he does not have the power to do this,” she said. “I will not resign.”

According to legal experts, what Trump is trying to do is not only unusual but likely against the law. Federal Reserve governors are chosen for 14-year terms so they can make decisions about the economy without being pressured by politics. They can only be removed for serious reasons, such as misconduct or failing to do their job properly. Old personal financial matters, especially ones that happened before they started their job, usually do not count as a reason to remove them.

Lisa Cook, who was appointed by President Joe Biden in 2022, made history as the first Black woman to serve on the Federal Reserve’s Board of Governors. Now she is preparing for a legal battle with the help of her lawyer, Abbe Lowell, who is well-known for handling high-profile cases. Lowell said that Trump’s decision has no legal basis and that they will take whatever steps are needed to stop this attempt to remove her.

Many people believe this is not really about the mortgage accusations at all. They think Trump is trying to gain more control over the Federal Reserve so he can influence interest rates. Trump has openly said that he wants the Fed to lower borrowing costs, even if inflation is still a risk. If Lisa Cook is forced out, Trump would be able to appoint someone who agrees with him, which could give him more power over the board.

Recently, he already nominated Stephen Miran to replace Fed Governor Adriana Kugler, who resigned before her term officially ended. If Cook is removed too, Trump’s appointees would make up the majority on the board. That could lead to major changes in how the Federal Reserve handles interest rates, which affect everything from mortgage payments to business loans and credit card debt.

Financial markets reacted to this news with concern. Stock futures went down a little, and the dollar lost some strength. This shows that investors are worried that Trump’s actions might make the Federal Reserve seem less stable and less independent. Ironically, this could have the opposite effect of what Trump claims he wants — instead of lowering borrowing costs, it might actually make them go up because investors could see more risk in the U.S. economy.

The law says a Federal Reserve governor can be removed “for cause,” but that usually involves a formal process: an investigation, a fair review, a chance for the person to defend themselves, and clear evidence. None of that happened in this case. Instead, Trump made a public announcement without going through the usual legal steps.

Now, this situation is likely to go to court, and it may even end up in the Supreme Court. Legal experts say this will be a major test of how much power a president really has over the Federal Reserve. Some believe that if Trump succeeds, it could set a dangerous precedent, making it easier for future presidents to remove officials who don’t agree with them.

Senator Elizabeth Warren strongly criticized Trump’s move, calling it an illegal and desperate attempt to control the economy and shift blame for his own inability to lower costs for ordinary Americans. She said it clearly violates the Federal Reserve Act and should be overturned by the courts.

The Federal Reserve was designed to operate independently from politics for a reason. It makes tough decisions that affect everyone, like raising or lowering interest rates to control inflation, and it needs to do that without worrying about political fights or elections. In the past, presidents have tried to pressure the Fed quietly behind closed doors, but what Trump is doing is far more direct and aggressive. No president in history has ever tried to remove a sitting governor in this way.

This fight is not just about one person’s job. It is about the balance of power between the White House and one of the most important institutions in the U.S. economy. It is about whether political leaders can control the Federal Reserve whenever they want, or whether the Fed will remain independent so it can act in the best interest of the economy, even when those decisions are unpopular with politicians.