Monetary policy Trump orders the dismissal of Fed Governor Cook
US President Donald Trump has intervened in the personnel policy of the Federal Reserve (Fed). Fed Governor Lisa Cook will be dismissed from her position on the board with immediate effect, the Republican announced on his Truth Social platform.
26.08.2025, 03:01
26.08.2025, 03:11
SDA
In his letter to Cook, the US President stated that there were reasonable grounds to believe that she had made false statements in one or more mortgage contracts.
By law, a president can only dismiss central bank governors if there are sufficient grounds. Trump's decision may be contested.
Trump threatened with dismissal
There had already been indications days ago that the US President wanted to get rid of Cook. When asked by a journalist whether he would fire her, he said: "Yes, I will fire her if she doesn't resign." Cook had recently hit the headlines due to allegations of irregularities in taking out loans for real estate. The head of the State Housing Finance Agency had written to US Attorney General Pam Bondi about the allegations.
Trump wants to lower the key interest rate
For months, Trump has been insisting on a reduction in the key interest rate - to no avail. The Federal Reserve Council is hesitant in view of inflation concerns, also due to Trump's import tariffs. Trump's calls for the head of the US Federal Reserve, Jerome Powell, to resign have been unsuccessful. And his threats to fire him if necessary have not yet been followed by action.
Economist Cook has been a member of the Executive Board since May 2022. According to the Fed, her term of office actually runs until January 31, 2038. Prior to her appointment, she worked as a professor of economics and international relations at Michigan State University, among other things.
