Federal Reserve official plans to stay despite Trump firing

Lisa Cook on Monday said she would not step down from the central bank’s Board of Governors, according to a statement from her lawyers. President Donald Trump did not have any legal cause or authority to remove her from her position, she said. Trump on Monday shared a letter stating that he fired Cook after finding sufficient reason to believe she may have made false statements on mortgage agreements. Trump’s letter said she claimed two properties, one in Michigan and one in Georgia, to be her primary residence on different documents within two weeks. She had listed the Atlanta property for rent months before describing it as a primary residence, according to Federal Housing Finance Agency Director Bill Pulte. The U.S. Department of Justice had not levied any charges against Cook as of Tuesday morning.

Who is Cook? Former President Joe Biden appointed Cook to the board of governors in May 2022 to fill an unexpired term through early 2024. She was reappointed in September 2023 to serve a term ending in 2038. Before joining the board, Cook was a professor of economics and international relations at Michigan State University, was the director of the American Economic Association Summer Training Program, and was a research associate at the National Bureau of Economic Research.

How does the Fed’s structure work? The president appoints seven members to the Board of Governors to oversee the Federal Reserve System. The Senate must confirm each appointment and the members serve staggered 14-year terms. The board supervises the directors of the 12 reserve banks throughout the country.

Dig deeper: Read Elizabeth Russell’s report about Jerome Powell hinting at rate cuts during an annual economic symposium.