US President Donald Trump ordered the removal of Federal Reserve Governor Lisa Cook 鈥渆ffective immediately鈥 on Monday (local time), citing allegations of false statements on her mortgage agreements 鈥 and expanding pressure on the independent central bank.
Referring to the Federal Reserve Act as justification, Trump wrote in a letter addressed to Cook: 鈥淚 have determined that there is sufficient cause to remove you from your position.鈥
A President is generally limited in their ability to remove officials from the central bank, with a Supreme Court order recently suggesting that Fed officials can only be removed for 鈥渃ause鈥, which could be interpreted to mean wrongdoing.
But the US leader pointed to a criminal referral dated August 15 from the Federal Housing Finance Agency鈥檚 director 鈥 a staunch ally of Trump 鈥 to the US Attorney-General in announcing that Cook would be removed from her role.
The referral, Trump said, provided 鈥渟ufficient reason鈥 to believe Cook might have made 鈥渇alse statements鈥 on one or more mortgage agreements.
Earlier this month, Cook said in a statement that she had 鈥渘o intention of being bullied to step down鈥 but would take questions about her financial history seriously.
The Fed did not immediately respond to queries on Trump鈥檚 announcement.
- Agence France-Presse
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