US President Donald Trump fired Federal Reserve governor Lisa Cook over mortgage fraud allegations. As a result, he now has the chance to name a replacement and gain more control over Fed policy. Moreover, the move comes after Trump’s repeated calls for lower interest rates were ignored by Fed officials.

Past Cases Show Similar Pattern

In the past, the Trump administration made similar claims against rivals. For example, New York attorney general Letitia James and California senator Adam Schiff faced mortgage fraud accusations, although both denied them. However, Cook stands apart because she is not a politician.

Cook’s Role at the Fed

Lisa Cook was appointed by Joe Biden in 2022. At that time, she became the first Black woman to serve on the Federal Reserve Board. Her term was supposed to last until 2038. Furthermore, she is a respected economist. She taught at Harvard and Stanford and also served on Barack Obama’s Council of Economic Advisers.

Allegations From Trump Appointee

The allegations came from Bill Pulte, head of the Federal Housing Finance Agency and a Trump appointee. Specifically, he claimed that Cook listed two different homes as her primary residence when applying for mortgages in 2021.

“How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?” Pulte wrote on X, formerly Twitter. In addition, he referred the case to the Department of Justice.

Trump Demands Resignation

Soon after, Trump repeated the allegations before Cook had a chance to respond. On Wednesday, he declared on Truth Social that she “must resign, now!!!”