US President Donald Trump announced on Monday that he has dismissed Federal Reserve Governor Lisa Cook from her designation on the central bank’s board. The decision was made through a letter which has been issued by the White House, dated August 25, 2025. The President later posted on his Truth social media account with the caption: “President Trump officially relieves Lisa Cook of her position at the Federal Reserve.”

In a letter addressed directly to Cook, Trump used his authority under Article II of the US Constitution and the Federal Reserve Act of 1913, mentioning her dismissal to be effective immediately. “I have determined that there is sufficient reason to remove you from your position,” the president stated in the letter.

Cook says she won’t resign

Federal Reserve Governor Lisa Cook reacted to her removal, telling CNN in a statement shared by her attorneys  that President Trump had no legal grounds to fire her. “President Trump claimed to fire me ‘for cause’ when no cause exits under the law, and he has no authority to do so,” Cook stated. She further added that she won’t step down, mentioning, “I won’t resign, I will continue to carry out my duties to the American economy as I have been doing since 2022.”

What was the reason behind the removal of the Fed Governor?

The justification behind Cook’s removal comes from a criminal referral that was submitted earlier this month. The referral was made by William J Putle, Director of the Federal Housing Finance Agency, claiming that Cook made false statements in mortgage applications. As per the White House letter, she has signed a document declaring that a property in Michigan would be her primary residence for the year. She signed another one in another two weeks that a property in Georgia would be her primary residence during the same time.

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Trump termed the conduct as impossible to ignore. He stated, ‘’It is inconceivable that you were not aware of your first commitment while making the second. It is impossible that you intended to honour both.’’

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Trump on Lisa Cook

The US President highlighted the significance of integrity at the Federal Reserve, which is responsible for managing interest rates and looking after financial stability. “The American people must be able to have full confidence in the honesty of the members entrusted with setting policies and supervising the Federal Reserve,” he stated. He also blamed Cook of “deceitful and potentially criminal conduct in a financial matter” and mentioned that he had no confidence in her uprightness.

Concluding the letter, Trump maintained that Cook’s actions led to “gross negligence in financial transactions that call into question your competence and trustworthiness as a financial regulator.”

The decision marks a major move by a sitting president against a Federal Reserve Governor.