"What she did was terrible," US President Donald Trump said on 22/8 when asked by reporters about Federal Reserve (Fed) Governor Lisa Cook, who is facing criticism from the Trump administration over allegations of mortgage fraud.
"I will fire her if she doesn't resign," he said during a visit to the White House museum.
Cook has not commented on Trump's statement.
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US President Trump speaks during a visit to the White House museum on 22/8. Photo: AP |
US President Trump speaks during a visit to the White House museum on 22/8. Photo: AP
William Pulte, director of the Federal Housing Finance Agency (FHFA), on 20/8 accused the Fed governor of listing her primary residence as an apartment in Atlanta, despite previously taking out a mortgage on a house in Michigan and claiming it as her main home.
He called on the US Justice Department to investigate Cook for alleged mortgage fraud, and President Trump demanded the Fed governor "resign immediately." A Justice Department official said the agency is seriously reviewing the allegations raised by the FHFA director.
The Fed governor later declared she had "no intention of resigning because of bullying." She said she would seriously consider any "legitimate" questions about her financial history as a member of the Fed, adding that she is gathering accurate information to answer the questions.
The Fed's Board of Governors consists of seven members appointed by the US president and confirmed by the Senate, each serving a 14-year term and not eligible for reappointment.
Cook is one of three governors appointed by former president Joe Biden. Two others were chosen by Trump.
President Trump is urging the Senate to quickly confirm Stephen Miran, chairman of the Council of Economic Advisers, to temporarily fill a vacant seat on the Fed's Board of Governors, following Adriana Kugler's sudden resignation earlier this month.
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Cook speaks in Washington in 2022. Photo: AP |
Cook speaks in Washington in 2022. Photo: AP
If Cook resigns or is fired, Trump could appoint a replacement and ensure that a majority of the Fed's Board of Governors share his views on monetary policy.
Trump has repeatedly criticized Fed Chair Jerome Powell, whose term ends in 5/2026, for not agreeing to lower interest rates and for the cost of renovating the agency's infrastructure.
However, experts say it will not be easy for Trump to fire Cook, who has not been convicted of any crime. The law allows the president to remove policymakers for "cause," usually understood as serious misconduct or illegal behavior. However, this is a broad term with little legal precedent, making it difficult to prove.
Pham Giang (Reuters, CNBC)
