Trump says he’s firing Fed Governor Lisa Cook, opening new front in fight for central bank control

President Donald Trump announced he is firing Federal Reserve Governor Lisa Cook, escalating his battle for control over the central bank. Trump claims Cook committed mortgage fraud, but she denies any wrongdoing and refuses to resign. Bill Pulte, a Trump appointee, alleged Cook claimed two primary residences to secure better mortgage terms. Legal experts argue Trump's move lacks proper process and legal authority, potentially leading to a Supreme Court battle. Cook's removal could disrupt financial markets and erode the Fed's political independence, crucial for fighting inflation. Trump's action has drawn swift rebuke from advocates and former Fed officials, who call it illegal and authoritarian. If successful, Trump's appointees would gain a 4-3 majority on the Fed's board. Cook, the first Black woman to serve as a Fed governor, was appointed by President Joe Biden in 2022. The legal battle could impact bond investor confidence and borrowing costs. Trump has previously threatened to fire Fed Chair Jerome Powell and has appointed officials supportive of lower interest rates.