Fed Governor Defies Removal: “I Will Not Resign,” She Says

Federal Reserve Governor Lisa Cook has announced she will not step down from her post, rejecting President Trump’s recent claim that she can be dismissed at his discretion. Trump’s decision to fire her has sparked debate over the limits of presidential authority and the independence of the Fed.

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Cook Pushes Back on Trump’s Claim

Late Monday, hours after Trump’s public warning, Cook released a statement declaring that she would remain in office. She asserted that Trump’s attempt to remove her “for cause” lacked legal basis.

“President Trump purported to fire me ‘for cause’ when no cause exists under the law,” she said. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”

Cook insisted that the president does not have the authority to force her departure, and that she would uphold her responsibilities to guide monetary policy and safeguard financial stability.

Trump’s Rationale: Fraud Allegations and Housing Claims

In a letter sent to Cook, Trump invoked a criminal referral from the Federal Housing Finance Agency, accusing her of misrepresentations in mortgage documents. He alleged that she signed commitments claiming two properties as her primary residence in overlapping periods.

“It is inconceivable that you were unaware of your first commitment when making the second,” Trump wrote. He argued that this, combined with the mortgage referral, justified her removal — citing concerns about her integrity and trustworthiness.

Trump emphasized that markets and the public needed complete confidence in those steering the Fed and expressed that Cook’s actions, as he sees them, undermine that trust. Nevertheless, no criminal charges have been filed at this time.

A Historic Removal Attempt

Cook’s refusal adds a dramatic chapter to U.S. monetary history. Statutes governing the Federal Reserve allow a sitting governor to be removed only for cause — typically defined as misconduct, malfeasance, or violation of law. Policy disagreement or performance issues are generally not valid grounds for removal.

Trump’s move would mark the first-ever attempt by a U.S. president to dismiss a sitting Federal Reserve governor. Given the Fed’s long tradition of insulation from political pressure, this is widely seen as a test of constitutional and regulatory boundaries.

Political Overtones and Stakes

Observers say the timing is no coincidence. Trump has long criticized the Federal Reserve for keeping interest rates higher than he would prefer, arguing it harms economic growth and burdens government borrowing. His past threats to replace Fed Chair Jerome Powell reflect this tension. But attempting to forcibly remove Cook takes that confrontation to a new level.

Cook was nominated by President Biden in 2022 and confirmed by a narrow Senate vote in 2023. Her term runs through 2038. Her confirmation was contentious from the start, with Republicans questioning her views and alignment.

Supporters argue that preserving her tenure is essential for fiscal stability and preserving the Fed’s independence from political cycles. Critics of Trump’s move warn it could unsettle markets, erode confidence in U.S. institutions, and set a dangerous precedent.

What Comes Next

If Trump pursues this further, the matter is likely headed to the courts. Legal challenges would focus on interpreting the specific provisions of the Federal Reserve Act, as well as constitutional limits on presidential removal powers.

In the meantime, Cook continues in her role, making decisions on interest rates and regulatory enforcement. Her defiance shifts this from a policy fight into a showdown over institutional norms — and how far a president may go in reshaping independent agencies.

For now, Cook stands firm: she will not resign, and she believes the law is on her side. The final outcome may well hinge on how judges interpret the balance between political accountability and statutory protections.