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

Sada News - U.S. President Donald Trump has dismissed Federal Reserve Board member Lisa Cook from her position at the U.S. central bank, while she confirmed that she will continue her work, asserting that the decision lacks legal grounds.

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

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

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

These developments come after the U.S. Department of Justice indicated its intention to investigate Cook, following a criminal referral from Federal Housing Finance Agency Director Bill Bolte, 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 on Democratic figures and to pressure the central bank to lower interest rates.

Cook had stated on August 20, after Bolte urged U.S. Attorney General Pam Bondi to investigate, that she does not intend to be forced to resign from her position "due to some questions raised in a tweet."

She added that she intends to address any questions regarding her financial history seriously as a Federal Reserve Board member, and is therefore gathering accurate information to answer any legitimate questions and provide the facts.

Trump had dismissed Lisa Cook on the grounds of misconduct in obtaining mortgage loans, in an unprecedented move that could 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 made 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 rise in gold prices. The precious metal reduced its previous losses, rising by 0.4% and trading near $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 short-term Treasury yields declined as investors focused on expectations for 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 a "justified reason." However, his success in this process would enable him to appoint another member to the Federal Reserve Board, after months of pressure on its chairman Jerome Powell to lower interest rates.