The US president has clashed with Federal Reserve members over his bid to rapidly slash interest rates despite inflation.<\/p>\n
Published On 7 Aug 20267 Aug 2026<\/p>\n
The White House has revived its efforts to remove Lisa Cook, the first Black woman to serve as a governor at the Federal Reserve, the United States\u2019 central bank.<\/p>\n
On Friday, media reports emerged that the administration of President Donald Trump had sent Cook a letter threatening her position at the Federal Reserve.<\/p>\n
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\u201cYou are hereby provided notice that the President is considering removing you from your position,\u201d the letter read.<\/p>\n
Signed by White House Deputy Chief of Staff Dan Scavino, the letter gave Cook a deadline of three weeks to respond to unproven allegations that she had committed mortgage fraud.<\/p>\n
It also warned that the crime she was accused of was punishable by up to 30 years in prison. Her conduct, the letter added, constituted negligence that calls into question her trustworthiness as a Federal Reserve governor.<\/p>\n
Trump first unveiled the claims against Cook in August 2025, in a push to fire her from her role.<\/p>\n
No other president since the central bank\u2019s founding in 1913 has sought to oust a Federal Reserve governor.<\/p>\n
The central bank has historically been insulated from political pressure, and under the law, Federal Reserve governors can only be removed by the president \u201cfor cause\u201d. A full term runs 14 years.<\/p>\n
Such laws aim is to shield the central bank from making economic decisions based on political pressures.<\/p>\n
But Trump has undertaken an aggressive campaign to slash interest rates, which are elevated as a means of combatting inflation.<\/p>\n
He has also sought to rid the federal government of appointees aligned with his Democratic predecessors. Cook was nominated in 2022 under President Democrat Joe Biden, Trump\u2019s two-time election rival.<\/p>\n
Trump\u2019s claims against Cook centre on the idea that she listed two homes as her primary residence: one in Georgia and the other in Michigan. That could have made her eligible for favourable mortgage rates.<\/p>\n
But there is no conclusive evidence so far that Cook sought to deceive lenders, making a successful fraud prosecution unlikely.<\/p>\n