WASHINGTON (dpa-AFX) - Federal Reserve Governor Lisa Cook has responded to President Donald Trump's unprecedented action of removing her from the top post, by refusing to quit.
In a letter to Cook, posted on Truth Social Monday, Trump had said that she has been removed from her position on the Board of Governors, raising concerns over the Federal Reserve's independence. He said there is sufficient cause to remove her from the position alleging that she engaged in mortgage fraud related to the purchase of two properties.
According to Trump, there is sufficient reason to believe Cook made conflicting declarations on mortgage agreements about her Michigan property and a Georgia property.
'The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks. The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve. In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity. At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator', the letter said.
Cook said the President had no authority to remove her from the Board of Governors, and she would not step down.
'President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so,' Cook said in statement. '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's lawyer, Abbe Lowell, was quoted as saying that they plan to take 'whatever actions are needed to prevent' Trump's 'illegal action.'
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