Summary
- President Donald Trump announced the abrupt dismissal of Fed board member Lisa Cook.
- President Trump cited loss of trust in financial conduct and allegations of fraud as reasons for her dismissal.
- Cook contended the dismissal lacked legal grounds and stated she will continue to perform her duties.
Board member Cook pushes back, stating "I will not resign"
U.S. President Donald Trump has abruptly dismissed Lisa Cook, a member of the Fed, who was recently accused of mortgage fraud.
On the 25th (local time), President Trump made public a letter to Cook on Truth Social. In the letter, President Trump stated, "You are hereby immediately dismissed from your position as a Fed board member." He further added, "The American people must have full confidence in the integrity of those tasked with determining and overseeing Fed policy," and "Due to your deceptive and potentially criminal financial conduct, both the public and I cannot trust your integrity."
Cook, the first Black woman in Fed history, was nominated in 2022 by former President Joe Biden. Her term runs until 2038. However, Cook faced increasing pressure to resign after Bill Pulte, a close associate of President Trump and Director of the Federal Housing Finance Agency (FHFA), accused her of mortgage fraud. The U.S. Department of Justice is currently investigating claims that Cook designated a second residence to secure a more favorable loan under false pretenses.
On the same day, Cook stated there is no legal basis for President Trump to dismiss her, declaring, "I will not resign and will continue to perform my duties."
Dong-Hyun Kim, 3code@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
