Resign or Be Fired! Trump Pressures Fed Governor Cook Again

On August 22 local time, U.S. President Donald Trump told the media that if Federal Reserve Governor Lisa Cook does not resign voluntarily, he will use his authority to remove her from office. This statement further escalates the White House's pressure on the Federal Reserve.

Elizabeth Warren, a Democratic senator and member of the U.S. Senate Banking Committee, posted on social media on Friday, stating that Trump is targeting Cook because he is "trying to find a scapegoat for his failure to lower costs for Americans."

As Trump's dissatisfaction with the Federal Reserve's monetary policy continues to grow, his criticisms have expanded from interest rate policies to the massive cost overruns of the Fed headquarters renovation project, as well as attacks on the Fed Chair and members of the Federal Open Market Committee (FOMC).

That same day, after Powell hinted at a possible rate cut in September during the Jackson Hole Economic Symposium, Trump once again publicly expressed his dissatisfaction. He posted on social media: "Powell should have cut rates a year ago. It's too late now to signal a rate cut."

Recently, the Federal Reserve Board has another vacancy due to the unexpected early resignation of former Governor Adriana Kugler. Trump is currently pushing the Senate to quickly confirm his nominee, Stephen Miran, Chairman of the Council of Economic Advisers, to serve the remainder of Kugler's term until January 31, 2026.

Under the current Federal Reserve Act, the president can only remove a governor for cause, such as serious neglect of duty or misconduct. Several legal experts believe that if Trump attempts to directly remove Cook, he may face significant legal challenges. Earlier this year, the U.S. Supreme Court indicated that the Federal Reserve's independence sets it apart from other regulatory agencies, and members cannot be easily removed due to policy disagreements.

This controversy stems from allegations made by Bill Pulte, Director of the Federal Housing Finance Agency. Pulte claimed that Cook made "false statements" in two mortgage applications in 2021, declaring properties in Michigan and Georgia as her "primary residence." He published documents allegedly bearing Cook's signature on social media and referred the materials to the Department of Justice.

Subsequently, Ed Martin, an official at the U.S. Department of Justice, wrote to Fed Chair Powell, stating that the case "requires further review" and urging Powell to take immediate action. "Remove Cook from the Board today, or it will be too late," he wrote in the letter. Martin has previously led similar investigations against California Federal Senator Adam Schiff and New York Attorney General Letitia James.