President Trump stepped up his pressure on the Federal Reserve on Friday, threatening to fire one of the central bank's governors if she doesn't step down on her own. "What she did was bad," Trump told reporters, referring to Lisa Cook. "I'll fire her if she doesn't resign," he added, reports CNBC. Earlier this week, the Trump administration accused Cook of mortgage fraud, alleging that she bought an investment condo and got a better interest rate by falsely saying it was her primary residence. Trump's camp insists it's not a political vendetta, but skeptics—including some on the right—aren't sure about that, especially because other prominent Democrats have been hit with the same charge.
Cook, a Biden appointee and the first Black woman to serve as a Fed governor, has said she won't be "bullied" out of her role and will answer the charges in detail soon. Related:
- Can he fire her? The president can indeed fire a Fed governor "for cause," but it's a rare move that would surely be met with legal challenges, per the New York Times. "It's a broad term that has little legal precedent, suggesting it is a high bar to prove."
- A new Fed: If Trump is able to quickly force Cook out, he would have a majority on the seven-member board that shares his economic views, notes CNBC. Two of the current members are Trump appointees, and a third is pending. The governors serve 14-year terms.
Trump's comments came on the same day that Fed chief Jerome Powell signaled that the Fed
might indeed cut rates soon.
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