Trump Fires Fed Governor Cook Over Mortgage Fraud Claims

Published AUG 26 2025

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Above: Jerome Powell, chairman of the U.S. Federal Reserve, with Lisa Cook in Washington, DC, on June 25, 2025. Image credit: Al Drago/Bloomberg/Getty Images

The Spin

Cook's removal is justified given the serious allegations of mortgage fraud that undermine public trust in the Federal Reserve. The Fed has tremendous responsibility for setting interest rates and regulating banks, which requires complete honesty from its members.

Donald Trump on Truthsocial Breitbart

This firing represents an authoritarian power grab that blatantly violates the Federal Reserve Act and seriously threatens the central bank's independence. Trump clearly lacks the proper legal authority to remove Cook, especially considering she hasn't been charged with any crime or misconduct whatsoever.

Australian Financial Review X

Metaculus Prediction

There's a 52% chance that the Federal Reserve will set a target policy rate that is negative by 2050, according to the Metaculus prediction community.