Donald Trump renews effort to fire Federal Reserve governor Lisa Cook

What the report says

Al Jazeera reports that the White House has renewed its effort to remove Federal Reserve Governor Lisa Cook, the first Black woman to serve on the Fed’s board. According to the article, a letter sent by the administration of President Donald Trump warned Cook that he was considering firing her and gave her three weeks to answer allegations of mortgage fraud. The claims have not been proven, and Cook’s lawyers said there is no valid basis for removing her.

The dispute is part of a broader clash between Trump and the Federal Reserve over interest rates and inflation. Trump has pushed for faster rate cuts, while the Fed has kept borrowing costs elevated to help curb price increases. Al Jazeera notes that Cook was nominated in 2022 by then-President Joe Biden and that the Fed is designed to be insulated from political pressure, with governors removable only “for cause.”

The article adds that Trump first raised similar accusations in 2025, but a US Supreme Court decision in June blocked an earlier attempt to fire Cook. The latest letter was dated August 5, the same day Cook spoke publicly in Alaska and said inflation remained too high. Her lawyer said the team would challenge the move and defend both Cook’s seat and the central bank’s independence.