WASHINGTON — President Donald Trump is considering removing Federal Reserve Governor Lisa Cook from her post, a move that challenges the central bank's independence. The White House sent Cook a letter this week formally notifying her that the president is "considering" her removal.
The letter demanded Cook respond to allegations of mortgage fraud within three weeks. The claims remain unproven, and they predate this latest White House action.
The move follows a recent Supreme Court setback for the administration on executive appointments and sets the stage for a legal battle over the Federal Reserve's autonomy.
Fed governors typically serve 14-year terms designed to insulate them from political pressure and keep monetary policy grounded in economic factors, not electoral ones.
Removing a sitting Fed governor is rare and draws scrutiny from Congress and legal experts concerned about executive overreach. The White House has not publicly detailed the allegations against Cook, who was appointed to the Fed board in 2022.
Legal scholars have previously cited the Federal Reserve Act's provisions for independence as a barrier to removal without clear cause. A legal challenge is likely, and could delay or block any ouster.
The action could destabilize the central bank's leadership. Federal Reserve Chair Kevin Warsh, sworn in May 2026, has consistently emphasized the Fed's independence in guiding economic policy.
Senate Majority Leader John Thune and Senate Minority Leader Chuck Schumer have both previously defended the Fed's nonpartisan role. A formal move to remove Cook would likely draw sharp reactions from both sides, particularly given the unproven nature of the allegations.
Cook's response within the three-week deadline will determine the White House's next steps.
