August 25, 2025
Trump tries to fire Fed governor Cook, who sues saying he can't
Constitutional showdown over Federal Reserve independence
🏛️Government💰Economy⚖️Justice
President Trump tried to fire Federal Reserve Governor Lisa Cook on Aug. 25, 2025, claiming mortgage fraud. This marked the first presidential firing attempt of a Fed governor in 111-year history.
Cook refused to resign, stating 'President Trump purported to fire me for cause when no cause exists under the law, and he has no authority to do so.'
Lisa Cook is the first Black woman to serve as a Fed governor. Biden nominated her in 2022 with a term extending to 2036.
The Justice Department opened a criminal investigation into Cook's mortgage applications after Pulte's referral, though prosecutors haven't filed any charges.
The Federal Reserve Act of 1913 allows the president to fire Fed governors only 'for cause'—historically meaning malfeasage or dereliction of duty.
Cook is the first Black woman to serve as a Fed governor. Biden nominated her in 2022 with a term extending to 2030.
Cook's legal challenge in federal court could reach the Supreme Court over presidential authority to remove Fed governors.
🏛️Government💰Economy⚖️Justice
Test Your Knowledge
10
Q1
Which Federal Housing Finance Agency Director, in a letter dated August 15, 2025, alleged that Federal Reserve Governor Lisa Cook committed mortgage fraud by listing two properties as her primary residence?
Q2
What milestone did Lisa DeNell Cook achieve when she was sworn in as a member of the Federal Reserve Board of Governors in May 2022?
Q3
How does the Federal Reserve's independence from political pressure traditionally protect the US economy?
Q4
What mortgage fraud allegations did Federal Housing Finance Agency Director Bill Pulte make against Federal Reserve Governor Lisa Cook in August 2025?
Q5
Under the Federal Reserve Act of 1913 (Dec. 23, 1913, ch. 6, § 10, 38 Stat. 259), what requirement governs the removal of sitting Federal Reserve governors?
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Lisa Cook
Federal Reserve Governor
Donald Trump
President of the United States
Bill Pulte
Federal Housing Finance Agency Director
Jerome Powell
Federal Reserve Chairman
Elizabeth Warren
Senate Banking Committee Ranking Member
Ed Martin
Justice Department Official