In a shocking move, U.S. President Donald Trump announced the removal of Lisa Cook, the first African-American woman to serve as a Federal Reserve governor, amid allegations of mortgage fraud.
Trump posted on his Truth Social account on Monday:
“I have determined that there is sufficient cause to remove you from your position.”
The firing comes after William Pulte, Director of the U.S. Federal Housing Finance Agency (appointed by Trump), alleged that Cook falsely claimed two mortgages as primary residences. The Department of Justice (DOJ) confirmed it is investigating the matter.
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What Led to Lisa Cook’s Removal?
On August 20, President Trump urged Lisa Cook to resign following the mortgage fraud allegations. When she did not step down, he formally terminated her position. The controversy revolves around accusations that Cook misrepresented property ownership details, violating federal rules.
Who is Lisa Cook? Background and Career Highlights
Lisa D. Cook is a renowned economist with an extensive academic and policy background:
- Academic Roles:
- Former professor of economics and international relations at Michigan State University.
- Directed the American Economic Association Summer Training Program (2018-2021).
- Served as a research associate at the National Bureau of Economic Research.
- Previous Positions:
- Faculty member at Harvard University’s Kennedy School of Government.
- Deputy Director for Africa Research at the Center for International Development.
- National Fellow at Stanford University.
- Government Roles:
- Senior economist on the Council of Economic Advisers under President Barack Obama (2011-2012).
- Senior adviser on finance and development at the U.S. Treasury (2000-2001).
- Education:
- BA in Philosophy from Spelman College.
- Second BA in Philosophy, Politics, and Economics from Oxford University as a Marshall Scholar.
- Ph.D. in Economics from University of California, Berkeley.
Tenure at the Federal Reserve
- First appointed: May 23, 2022, to complete an unexpired term ending January 31, 2024.
- Reappointed: September 8, 2023, and sworn in on September 13, 2023, for a term ending January 31, 2038.
Lisa Cook made history as the first African-American woman to serve on the Federal Reserve Board of Governors.
What Happens Next?
The DOJ investigation into the mortgage fraud allegations is ongoing. If charges are filed, this case could have major political and economic implications. Trump’s decision to remove Cook underscores a hard stance on ethics and compliance within financial institutions.
Conclusion
Lisa Cook’s firing marks a historic and controversial moment for the Federal Reserve. As the first African-American woman governor, her removal amid fraud allegations has sparked debates about accountability, politics, and representation in top economic roles. The outcome of the DOJ probe will determine the next chapter in this high-profile case.