President Donald Trump has escalated his attacks on the US Federal Reserve, this time directing his criticism at Governor Lisa Cook.
His remarks came shortly after blasting Fed Chair Jerome Powell for failing to slash interest rates more quickly.
“Cook must resign, now!!!” Trump declared in a post on his Truth Social platform, referencing a Bloomberg report that highlighted growing calls for scrutiny of Cook’s financial dealings. The report pointed to comments by Federal Housing Finance Agency director Bill Pulte, a close Trump ally, who allegedly urged the US attorney general to investigate Cook’s involvement in two mortgages, suggesting potential criminal wrongdoing.
The Trump administration has frequently pushed investigations into mortgage-related misconduct among political rivals. However, it remains uncertain whether authorities will pursue a formal probe against Cook, who made history as the first Black woman appointed to the Fed’s Board of Governors.
While Trump has openly demanded Cook’s resignation, his authority to force her out is highly restricted. The Supreme Court has clarified that Fed officials cannot be dismissed over policy disagreements but may only be removed for “cause,” a standard typically understood to involve proven misconduct.
The confrontation comes as Trump continues to berate Powell for maintaining interest rates at current levels. On Tuesday night, the president insisted that the economy required a “major rate cut,” arguing that there was “no inflation” and claiming that high mortgage rates were harming the housing sector. Trump followed up by branding Powell “a disaster” in another social media post.
Despite Trump’s claims, official data shows inflation remains a concern. The consumer price index held steady at 2.7 percent in July, higher than in previous months, underscoring the Fed’s cautious stance. Policymakers have been balancing the need to curb inflation, which has been affected by Trump’s sweeping tariffs, against the risks to employment and broader economic growth.
Cook, who joined the Fed’s board in May 2022, was reappointed in September 2023 and sworn in later that month for a term lasting until 2038. Before her tenure at the central bank, she served on President Barack Obama’s Council of Economic Advisers, cementing her reputation as an experienced economist with deep policy expertise.
Earlier this year, Trump also threatened Powell’s position, citing what he called an excessively costly renovation of the Fed’s headquarters. However, he later walked back the warning. Powell’s current term as Fed Chair is set to expire in May 2026.
What you should know
Lisa Cook is the first Black woman to serve as a governor on the Federal Reserve Board, holding a term that runs until 2038.
Her career spans academia and policy, including work with former President Barack Obama’s Council of Economic Advisers. Trump’s push for her resignation comes amid his broader clashes with the Fed, particularly with Chair Jerome Powell over interest rate decisions.
While Trump has frequently criticized Fed officials, legal protections make it difficult to remove them without evidence of misconduct. This political standoff highlights tensions between the White House and the nation’s central bank.
