Trump urges Fed Director Cook to step down promptly.
In a recent turn of events, US President Donald Trump has called for the immediate resignation of Federal Reserve Governor Lisa Cook, citing unsubstantiated allegations of false statements made on mortgage applications to secure better credit terms for real estate deals [1]. However, these accusations seem to be politically motivated, with the Trump administration accused of weaponizing government power against opponents rather than focusing on genuine mortgage fraud concerns.
As of August 2025, no independent confirmation or evidence has substantiated the claims against Cook. The situation appears more as a political attack than an established legal or ethical issue, and there is no indication that formal charges or disciplinary actions have been taken against her at this time.
Cook, who was appointed by President Joe Biden, made history as the first African American to hold the position of a member of the Federal Reserve Board of Governors. This political drama unfolds amidst the backdrop of succession talks for Jerome Powell, the current Federal Reserve Chair, whose term ends next May.
Trump has narrowed down the candidates for Powell's succession to three to four people, with Treasury Secretary Scott Bessent planning to present him with a selection of eleven potential successors in early September. There are rumours that Trump is attempting to install party loyalists in the Fed who would implement the rate cut he demands.
Interestingly, Trump justifies his demand for a rate cut with more favorable mortgage rates for US citizens. A lower interest rate would also reduce the interest burden on the soaring US national debt. However, the Federal Reserve's statutes stipulate that Trump can only recall Federal Reserve Governor Lisa Cook in the event of serious misconduct, but he did not present any evidence in his online post [1].
The seven members of the Fed Board of Governors are each appointed by the incumbent president and confirmed by the Senate. The current situation raises questions about the political influence on the Federal Reserve, an institution traditionally known for its independence.
[1] Source: Bloomberg News
*This article is for informational purposes only and does not express any personal opinions or endorsements.
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