US President Donald Trump has revived efforts to remove Lisa Cook, the first Black woman to serve as a governor at the Federal Reserve, the country’s central bank.
Fresh reports suggest that the Trump administration has sent a letter to Cook threatening her position at the Federal Reserve.
The letter read, “You are hereby provided notice that the president is considering removing you from your position.”
It asked Cook to respond within three weeks to allegations that she had committed mortgage fraud.
The letter also warned that the crime she was accused of was punishable by up to 30 years in prison.
Her conduct, it stated, constituted negligence that calls into question her trustworthiness and reliability as a Federal Reserve governor.
Trump first made the allegations in 2025 in a bid to fire Cook from her role. This is also the first time since the central bank was founded in 1913 that a US president has sought to remove a Federal Reserve governor.
The US Federal Reserve has always remained immune to political developments in the country, and under the law a serving governor can be removed only “for cause".
This gives the Federal Reserve independence in taking key financial decisions without political coercion.
The clash of interest between Trump and Cook came to light when Donald Trump demanded that the Fed decrease interest rates since the Iran war had forced the Fed to elevate levels to combat rising domestic inflation.
He has also sought to rid the federal government of appointees aligned with his Democratic predecessors. Cook was nominated in 2022 under President Joe Biden, Trump’s two-time election rival.
The letter sent to Cook this week was dated August 5. That same day, Cook spoke at an economic luncheon in Alaska, saying inflation is “too high” and indicating that she is “prepared to act” by raising interest rates, a position shared by others at the Federal Reserve.
Also read: Mecca defence deal sealed as US is positive on Iran-Hormuz talks
Follow us
