URGENT UPDATE: President Donald Trump has issued a stark warning to Federal Reserve Governor Lisa Cook, threatening to fire her if she does not resign amid serious allegations of financial misconduct. Just hours ago, Trump declared, “What she did was bad, so I’ll fire her if she doesn’t resign,” referencing a criminal referral made last week concerning alleged mortgage fraud involving properties in Ann Arbor and Atlanta.
The shocking announcement was made during a press briefing on August 22, 2023, where Trump emphasized his authority under the Federal Reserve Act, stating he could legally remove Cook “for cause.” This comes in light of accusations from Bill Pulte, Director of Federal Housing, who has been vocal on social media, asserting that Cook misrepresented her financial status while serving as a Fed governor.
On Truth Social, Trump also demanded, “Cook must resign, now!!” while detailing that Pulte claims Cook submitted false documentation regarding her residency status on a property she had listed for rent. Pulte stated, “We have obtained a document Lisa Cook submitted to the U.S. Government while serving as Federal Reserve Governor,” highlighting discrepancies in her claims regarding the Atlanta property.
Cook, however, is standing her ground. Earlier this week, she responded to Trump’s demand, stating, “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.” She acknowledged the seriousness of the allegations and is preparing to provide accurate information regarding her financial history.
While Cook has not been formally charged with any crime, the situation is developing, and Trump’s push to replace her could significantly alter the Federal Reserve’s leadership dynamics. Trump, who has already seen Adriana Kugler resign from the Fed earlier this month, has the opportunity to appoint a new governor should Cook step down or be removed.
The implications of this power struggle are enormous, as a shift in leadership could lead to a majority of Fed governors aligned with Trump’s fiscal policies, impacting economic decisions nationwide. As this story unfolds, all eyes are on the Federal Reserve, with potential ramifications for financial markets and the economy at large.
As of now, Cook remains in her position, but the pressure from the Trump administration is mounting. The American public is urged to stay tuned for further developments in this high-stakes political drama that could reshape the future of the Federal Reserve.
