NaijNaira
U.S. President Donald Trump has moved to remove Federal Reserve Governor Lisa Cook, citing questions over her mortgage documents that are now under criminal investigation — www.naijnaira.com reports.
Reuters noted that Trump sent a letter accusing Cook of “deceitful and potentially criminal conduct” tied to loans she secured on two homes purchased in 2021.
Those loans reportedly listed both properties as her primary residence, a declaration that often grants borrowers lower interest rates.
Cook has not yet provided detailed clarification, but she released a short statement saying she is “gathering the accurate information to answer any legitimate questions.”
The Federal Reserve Act gives presidents the power to remove a governor “for cause,” though the law does not clearly define what qualifies as cause.
Legal scholars argue that this gray area will likely be tested in court, as no U.S. president has ever tried to fire a sitting Fed governor before.
“This is incongruous with the entire concept of for-cause removal,” said Peter Conti-Brown of the University of Pennsylvania, stressing the law usually applies to on-the-job conduct.
If Cook challenges the decision, analysts expect the case to reach the U.S. Supreme Court, which earlier this year called the Fed “a uniquely structured, quasi-private entity.”
What remains uncertain is whether Cook can be physically removed if she resists, since the Fed has its own security and independence in operations.
The situation marks uncharted territory for both the Federal Reserve and the U.S. presidency, leaving the final outcome hanging in legal uncertainty.
