WASHNGTON, D.C.—President Donald J Trump today announced to X the immediate removal of Federal Reserve Governor Lisa Cook, a Biden appointee, “for cause” under Article II of the U.S. Constitution.
Although the Board is intended to act independently, a president can remove any governor for inefficiency or misconduct. Cook’s removal is centered on a recent discovery that she claimed two addresses as her primary residency in 2021—a Michigan property and a Georgia property—allegedly to receive tax breaks (mortgage fraud).
In June 2021, Cook entered into a 15-year mortgage agreement for a property in Ann Arbor, Michigan. According to Bill Pulte, head of the U.S. Federal Housing Finance Agency and a Trump ally, Cook declared this property as her primary residence. This designation typically qualifies for lower interest rates (e.g., 0.25-0.5% below market rates. In July 2021, approximately two weeks later, Cook purchased a condominium in Atlanta, Georgia, and secured a 30-year mortgage, again declaring it as her primary residence. Pulte alleges she similarly claimed tax breaks and reduced insurance rates tied to this designation, which conflicts with her Michigan claim.
The seven-member board had one vacancy prior to the immediate removal of Cook today. Of the five remaining members, President Trump appointed three—Jerome Powell, Christopher Waller, and Michelle Bowman—shifting the balance of power to enact Trump’s monetary policies.
President Trump has repeatedly called for substantial reductions in interest rates, advocating for a drop to around 1% or lower to further stimulate the economy, especially the housing market.
Trump has linked high interest rates to elevated mortgage rates which are currently around 6.7% for a 30-year fixed mortgage. A lower fed lending rate equates to reduce borrowing costs, making mortgages and consumer loans more affordable.
The minimum for a quorum in order for the Board to conduct its business is 4 Board members. Trump can now replace Cook with nominee more aligned with his America First Policy. The Republican-controlled Senate must approve the nominee.
Lisa Cook Federal Reserve Biography
Lisa D. Cook took office as a member of the Board of Governors of the Federal Reserve System on May 23, 2022, to fill an unexpired term ending January 31, 2024. She was reappointed to the Board on September 8, 2023, and sworn in on September 13, 2023, for a term ending January 31, 2038.
Prior to her appointment to the Board, Dr. Cook was a professor of economics and international relations at Michigan State University. From 2018 to 2021, she was director of the American Economic Association Summer Training Program. She was also a research associate at the National Bureau of Economic Research.
Previously, Dr. Cook was on the faculty of Harvard University’s Kennedy School of Government. During her time at Harvard, Dr. Cook also served as deputy director for Africa Research at the Center for International Development. Before then, she was a National Fellow at Stanford University.
From 2011 to 2012, Dr. Cook served as a senior economist on the Council of Economic Advisers under President Barack Obama. From 2000 to 2001, she served as a senior adviser on finance and development in the U.S. Department of Treasury’s Office of International Affairs.
Dr. Cook received a BA in philosophy from Spelman College. As a Marshall Scholar, she received a second BA in philosophy, politics, and economics from Oxford University. She earned a PhD in economics from the University of California, Berkeley.
Author: Mario Lotmore
