Trump says he's removing Federal Reserve Gov. Lisa Cook, citing his administration’s allegations of mortgage fraud
NBCAUG 27
Trump Fires Fed Gov Cook, She Vows to Stay
Above: Jerome Powell, chairman of the U.S. Federal Reserve, with Lisa Cook in Washington, DC, on June 25, 2025. Image copyright: Al Drago/Bloomberg/Getty Images
The Spin
Republican narrative
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.
Democratic narrative
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.