Trump fires Federal Reserve governor over loan fraud allegations

Donald Trump announced the resignation of Federal Reserve Governor Lisa Cook over allegations of mortgage loan fraud , further increasing pressure on the independent U.S. central bank. In response, Cook warned that the U.S. president lacks the authority to do so .

In a letter from the White House signed by Donald Trump and published on Monday on the social network Truth Social, the US President writes to Cook informing her that she is "resigning from her position on the Board of Governors, effective immediately."

“I concluded that there were sufficient grounds to remove her from office,” insisted the leader, who, in principle, is legally limited in his freedom to dismiss central governors , in particular Chairman Jerome Powell.

Trump had already pressured the African-American woman, the first to hold a Fed governorship, to resign . Donald Trump warned on Friday that he was willing to fire Cook if she didn't, after she was accused by a person close to the president of falsifying documents to obtain a mortgage loan.

Appointed by then-President Joe Biden (2021-2025), Lisa Cook has been under pressure from the White House since the head of the Housing Finance Agency, Bill Pulte, appointed by Trump, accused her of having “falsified bank documents and property records to obtain favorable loan terms” for two home loans, according to the Bloomberg agency.

Cook had already responded last week in a statement to the Agence France-Presse (AFP), emphasizing that the loan was taken out before he joined the Fed. "I don't intend to be intimidated into resigning from my position," he stated.

Meanwhile, in response to Donald Trump's announcement, Lisa Cook has already rejected the dismissal, arguing that the President lacks the authority to do so. "President Trump claimed he fired me 'for cause' when there is no legal cause and he has no authority to do so, " she argued, as quoted by the BBC .

(News updated at 8:03 am with reaction from Lisa Cook)