Draining the Swamp: Trump Fires Federal Reserve Governor Lisa Cook Over Alleged Mortgage Fraud

The Trump Administration has continued to meet its campaign promise of “draining the swamp,” as President Trump relieved Federal Reserve Governor Lisa Cook from her position Monday night.

The move comes after an accusation from Bill Pulte, the head of the Federal Housing Finance Agency (FHFA), who has accused her of committing mortgage fraud by listing two primary residences. 

According to the Hill. “In his initial allegations, Pulte included photographs of document signatures apparently belonging to Cook that allegedly applied to two different primary residences, one in Michigan and another described as an ‘Atlanta condo.'” However, Cook is refusing to step away from her position without a fight. 

It was said on Wednesday that Cook’s lawyer, Abby Lowell, would be bringing forward a lawsuit over President Trump’s involvement in the attempt to remove her from the position. Although Cook has denied all mortgage fraud allegations, President Trump has not publicly entertained the idea of letting her step back into the position. 

But Cook’s removal from her position isn’t just about mortgage fraud; it's a much deeper and more complex issue: Can Americans still trust those in charge of shaping the American economy? 

Monday, Trump published a statement on Truth Social saying: 

"Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately." The President said he had “sufficient cause” for the removal and has continued to emphasize the doubt that allegations like those brought against Cook pose to the confidence Americans instill in members entrusted with meaningful title like “Governor of the Federal Reserve.” 

Many individuals have questioned the legality of Cook’s removal because the Federal Reserve Act allows removal “for cause” without further definition. Trump has cited his “cause” in statements, but it will be in court that the public will see how much “cause” is required. Furthermore, the allegation of claiming two properties as primary residences for separate loans brings into question the competence of an individual exercising such negligence while sitting in a position of economic power. 

If Trump continues to hold to his campaign promises, there must be implications for the Federal Reserve's Public Trust. Their credibility hinges on impartiality and competence, and as of now, the Federal Reserve has only proven that perception of corruption could undermine confidence in domestic monetary policy. 

What many individuals don't know is that Cook’s removal could allow Trump to appoint a fourth member to the seven-person Board of Governors, giving him a majority and potentially reshaping monetary policy and restoring trust in independent American institutions.