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In the wake of the unprecedented removal of a Federal Reserve governor, President Donald Trump doubled down on his decision Tuesday, saying he is “always” ready for a legal fight after the ousted governor, Lisa Cook, signaled she would pursue legal action.
“She seems to have had an infraction and she can’t have an infraction. And especially that infraction because she’s in charge of, if you think about it, mortgages. We need people that are 100% above board, and it doesn’t seem like she was,” Trump said, referencing Cook’s alleged misconduct in securing mortgage loans.
TRUMP REMOVES FEDERAL RESERVE GOVERNOR LISA COOK FROM OFFICE, CITING FRAUD ALLEGATIONS
The Federal Reserve acknowledged Cook’s potential legal action and said in a statement that the U.S. central bank will “abide by any court decision.”
“Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System,” a Federal Reserve spokesperson wrote in a statement to Fox News Digital.
The Federal Reserve Board of Governors, commonly known as the Fed Board, is composed of seven members, or governors, who are nominated by the president and confirmed by the Senate.
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Cook’s potential removal from the Fed Board leaves a seat open on the panel that guides the nation’s monetary policy. This gives Trump another opportunity to name someone closely aligned with his financial policy to the Fed.
When asked about replacing Cook on the Fed Board, Trump told reporters at the White House that he has some “very good people for that position.”
Trump accused Cook — who was appointed by former President Joe Biden in 2022 and is the first Black woman to serve on the Fed’s Board of Governors — of mortgage fraud on Monday evening. Cook has denied any wrongdoing.
The allegations stem from Bill Pulte, a Trump appointee to an agency that regulates Fannie Mae and Freddie Mac. Pulte accused Cook of claiming two primary residences, one in Ann Arbor and another in Atlanta in 2021, with the goal of getting better mortgage terms.
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On Aug. 15, Pulte sent the Justice Department a criminal referral regarding Cook in which he accused her of falsifying bank documents and property records.
As it stands, Trump says Cook is fired, effective immediately. But Cook and her lawyer, Abbe Lowell, argue that he has no legal authority to remove her. Her term on the Fed Board runs until January 2038.
“President Trump has taken to social media to once again ‘fire by tweet’ and once again his reflex to bully is flawed and his demands lack any proper process, basis or legal authority,” Lowell said in a statement shared with Fox News Digital.
“We will take whatever actions are needed to prevent his attempted illegal action,” Lowell added.
Fox News Digital’s Rachel Wolf contributed to this report.
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