Lisa Cook Rejects Trump's Decision to Dismiss Her from the Federal Reserve Board

SadaNews - U.S. President Donald Trump has dismissed Federal Reserve Board member Lisa Cook from her position at the U.S. central bank, at a time when she confirmed that she would continue her work, considering the decision to be without legal grounds.

In a message posted on the "Truth Social" platform, Trump stated: "The American people must have full confidence in the integrity of the members tasked with setting policy and overseeing the Federal Reserve. In light of your deceptive behavior and potential criminality concerning a financial matter, they do not have that confidence, and I also do not trust your integrity. "

For her part, Cook stated in a statement through a spokesperson that "President Trump decided to dismiss me based on the existence of a 'cause,' whereas there is no cause under the law, and he has no authority to do so."

She added, as per the statement published by the Washington Post: "I will continue my duties to help the U.S. economy, as I have been doing since 2022.”

These developments follow the U.S. Department of Justice's indication of its intention to investigate Cook, following a criminal referral from the Director of the Federal Housing Finance Agency, Bill Bulty, who alleged that she may have committed mortgage fraud.

The investigation represents the latest step in a series of moves by the Trump administration to increase legal scrutiny of Democratic figures and to pressure the central bank to lower interest rates.

On August 20, Cook said, after Bulty called for U.S. Attorney General Pam Bondi to investigate, that she did not intend to be forced to resign from her position "due to some questions raised in a tweet."

She added that she intends to take any questions about her financial history seriously as a Federal Reserve Board member and is gathering accurate information to answer any legitimate questions and present the facts.

Trump had dismissed Lisa Cook on the grounds of alleged misconduct in obtaining mortgage loans, in an unprecedented move that may test the limits of presidential authority over the independent monetary institution if challenged in court.

In a letter to Cook, the first African American woman to hold a position on the Federal Reserve Board, Trump confirmed that he had "sufficient reasons to remove you from your position" due to what he considered misleading statements she had provided in 2021 to obtain two mortgage loans in Michigan and Georgia, where she indicated in both applications that they were her primary residence.

Gold Rises and Dollar Falls

Trump’s statements led to an immediate spike in gold prices. The precious metal reduced its earlier losses, rising by 0.4% and trading close to $3,377 per ounce in early Asian trading.

The Bloomberg Spot Dollar Index fell by 0.2% in early Asian trading, following Trump's move, while yields on short-term Treasury bonds declined as investors focused on expectations of interest rate cuts and the independence of the U.S. central bank.

It remains unclear whether Trump can dismiss Cook, especially since the process requires "just cause." However, if he succeeds in this process, it will enable him to appoint another member to the Federal Reserve Board after months of pressure on its Chairman Jerome Powell to lower interest rates.