Fire in the Fed: The Fight to Remove Lisa Cook

September 1st, 2025
Elisa Ma

It is no secret that the Trump Administration can be quick to let go of those working for him. From his time on reality TV show The Apprentice, to an allegedly compromised 2016 Twitter (now, X) password, to rallies during his 2024 campaign against then-Vice President Kamala Harris, two words have always resonated from President Donald Trump’s vocabulary: you’re fired.

On August 25, 2025, President Trump signed a letter to Dr. Lisa D. Cook, a member of the Federal Reserve Board of Governors, calling for her removal. Here’s what it means.

Who is Lisa Cook and What Did She Do?

Dr. Lisa Cook joined the seven-person Board of Governors of the Federal Reserve in 2022 after being appointed by then-President Joe Biden. Governor Cook is the first Black female governor of the Federal Reserve and an Economics Graduate from the University of California, Berkeley. Cook’s term was expected to end in 2038.

The Trump Administration seeks to remove Governor Cook on the grounds of a Criminal Referral regarding mortgage fraud committed in 2021, a year before her appointment to join the Federal Reserve. Cook allegedly took on two mortgages with both properties listed as primary residences, highlighting potential negligence and gaps in integrity.

Federal Reserve’s Independence in Limbo

The Federal Reserve was established in 1913 as an independent agency to set monetary policy, such as interest rates. Historically, the Fed’s independence meant the ability to set interest rates without influence from politicians.

President Trump has clashed with (and threatened to fire and sue) Federal Reserve Chair Jerome "Jay" Powell regarding interest rates. Trump wants interest rates to be lowered to boost consumer spending/borrowing and to help manage national debt. In contrast, Powell showed initial hesitance toward lowering rates to maintain economic stability and inflation. The Federal Reserve has since indicated that rate cuts are on the horizon.

Separately, Federal Reserve Governor Adriana Kugler resigned in early August without stating a reason, freeing a spot for appointment by President Trump.

What’s Next?

Governor Cook has appealed the ousting to a district court, arguing that the Trump Administration violated due process and failed to provide the legitimate “cause” required for dismissal. Cook is also seeking a temporary restraining order preventing her removal while she continues serving her role.

Once the decision is made, it will have implications on the independence of the Federal Reserve, global economic outcomes, and to what extent crimes can be used as a justification for firing government officials.