Politics

Trump Intensifies Battle to Oust Fed Governor Cook Before Crucial Interest Rate Vote

Trump seeks to oust Fed’s Cook, citing financial concerns before interest rate vote. Cook defends independence.

September 14, 2025, 6:25 PM

Lisa Cook, a woman with a pearl necklace, speaks into a cluster of microphones

Lisa Cook, a new member of the Federal Reserve Board of Governors, speaks to the press after being sworn in. By Photo Agency / Shutterstock.com.

Executive Summary

The Trump administration renewed its push to remove Federal Reserve governor Lisa Cook, filing a request with the U.S. Court of Appeals for the District of Columbia.

The administration’s effort cites concerns over Cook’s alleged misrepresentation of finances and questions her trustworthiness in managing the U.S. money supply, aligning with President Trump’s publicly stated dissatisfaction with the Fed’s monetary policy.

Cook’s legal team argues that her removal would significantly threaten the Federal Reserve’s independence and the nation’s economic stability, potentially leading to higher inflation and interest rates.

The Story So Far

The Trump administration’s renewed effort to remove Federal Reserve governor Lisa Cook is driven by President Trump’s long-standing desire for the central bank to slash interest rates, a stance that has led to his public criticism of the Fed’s monetary policy. This specific push is fueled by allegations against Cook concerning financial misrepresentation, including accusations of mortgage fraud, which the administration cites as reasons to question her trustworthiness. The broader context involves a high-stakes clash over the Federal Reserve’s independence, which Cook’s legal team argues would be jeopardized by her removal, with potential negative impacts on economic stability.

Why This Matters

The Trump administration’s renewed push to remove Federal Reserve governor Lisa Cook, particularly ahead of an interest rate vote, significantly escalates political pressure on the central bank and poses a direct threat to its independence. This challenge to the Fed’s autonomy could undermine the nation’s economic stability, with economists warning that a politicized central bank risks leading to higher inflation and increased interest rates for everyday Americans.

Who Thinks What?

The Trump administration is pushing for the removal of Federal Reserve governor Lisa Cook, citing concerns over her alleged misrepresentation of finances and questioning her trustworthiness in managing the U.S. money supply, aligning with President Trump’s desire for lower interest rates.

Lisa Cook’s legal team contends that the administration has not demonstrated sufficient cause for her dismissal and argues that her removal would significantly threaten the Federal Reserve’s independence and the nation’s economic stability, potentially leading to higher inflation and interest rates.

The Trump administration on Sunday renewed its push to remove Federal Reserve governor Lisa Cook, filing a request with the U.S. Court of Appeals for the District of Columbia. The move comes just days before the independent central bank is set to vote on interest rates, a decision President Trump has repeatedly urged the Fed to influence by slashing rates. The administration’s action follows weeks of political scrutiny surrounding Cook, citing concerns over her alleged misrepresentation of finances and questioning her trustworthiness in managing the U.S. money supply.

Administration’s Arguments

The Trump administration met its Sunday 3 p.m. ET deadline for the filing, asserting that Cook’s claims to remain on the board are “meritless.” The filing specifically highlighted concerns that allegations regarding Cook’s financial representations raise questions about “whether Cook can be trusted to act with forthrightness, care, and disinterest in managing the U.S. money supply.” This renewed effort aligns with President Trump’s broader and publicly stated dissatisfaction with the Federal Reserve’s monetary policy, including his direct criticism of Fed Chair Jerome Powell.

Cook’s Defense and Independence Concerns

Cook’s legal team, Lowell & Associates, had previously requested the court to reject Trump’s bid, arguing that the administration failed to demonstrate sufficient cause for her dismissal. Furthermore, Cook’s lawyers contend that allowing her removal would pose a significant threat to the Federal Reserve’s independence and the nation’s economic stability. They cited warnings from economists, stating that “everyday Americans ultimately would pay the price: higher prices ‘via higher inflation and higher interest rates’ that result ‘when central bank independence is lost.’”

Background on Allegations

The scrutiny around Cook intensified following accusations of mortgage fraud, which were initially brought forward by Federal Housing Finance Agency Director Bill Pulte. President Trump publicly addressed these allegations on August 25, stating his intent to remove Cook from her position due to the accusations. Lowell & Associates did not immediately respond to requests for comment regarding the administration’s latest filing.

The ongoing legal challenge underscores a high-stakes clash between the executive branch and the Federal Reserve, raising critical questions about central bank autonomy and the political pressures influencing economic policy ahead of key interest rate decisions.