Pulte claimed that Cook falsely reported two separate mortgages as her primary residences. The Department of Justice later confirmed that it is investigating the matter. (Photo: Bloomberg via Getty Images)
US President Donald Trump has fired Lisa Cook, the first African-American woman to serve as a Federal Reserve governor, over allegations of mortgage fraud.
Trump announced the decision on his Truth Social account on Monday. He wrote, “I have determined that there is sufficient cause to remove you from your position.”
This decision marks the end of Cook’s historic role at the Federal Reserve. She was widely seen as a trailblazer in economics and policymaking.
The controversy began on August 20 when Trump asked Cook to resign. The demand came after allegations by William Pulte, the Director of the U.S. Federal Housing Finance Agency.
Pulte claimed that Cook falsely reported two separate mortgages as her primary residences. The Department of Justice later confirmed that it is investigating the matter.
Trump moved quickly after the allegations. He argued that such accusations damaged the credibility of the Federal Reserve and needed strong action.
Lisa Cook is an accomplished economist and academic. She joined the Federal Reserve Board in May 2022 to fill an unexpired term. In September 2023, she was reappointed for a full term ending in 2038.
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Before her Fed appointment, Cook was a professor of economics and international relations at Michigan State University. She also directed the American Economic Association’s Summer Training Program between 2018 and 2021.
Cook built an impressive career in academia and government. She worked at Harvard University’s Kennedy School of Government and was deputy director for Africa Research at the Center for International Development.
She also served as a senior economist on the Council of Economic Advisers under President Barack Obama from 2011 to 2012. Earlier, she worked as a senior adviser in the U.S. Treasury’s Office of International Affairs.
Her research focused on economic growth, financial systems, and innovation. Cook was also a research associate at the National Bureau of Economic Research.
Lisa Cook earned her BA in philosophy from Spelman College. She later studied at Oxford University as a Marshall Scholar, where she received a degree in philosophy, politics, and economics.
She went on to complete her PhD in economics at the University of California, Berkeley. Her academic work earned her wide respect in the field of economics.
With Cook’s removal, the Federal Reserve Board has lost a key figure. The Department of Justice’s investigation into the mortgage fraud claims is ongoing.
If the allegations are proven, it could become a major scandal in Washington. If not, critics may argue that her dismissal was politically motivated.
