Trump Demands Resignation of Fed Governor, Escalates Tensions

United States President Donald Trump has called for the resignation of Federal Reserve Governor Lisa Cook, intensifying pressure on the central bank amid ongoing criticisms of Fed Chair Jerome Powell. On August 20, 2023, Trump posted on his Truth Social platform, stating, “Cook must resign, now!!!” This outburst followed a Bloomberg report detailing how Federal Housing Finance Agency (FHFA) Director Bill Pulte has urged for increased scrutiny of Cook regarding two mortgages.

Pulte, an ally of Trump, reportedly sent a letter to the U.S. Attorney General suggesting that Cook may have committed a criminal offense, although it remains unclear whether an investigation will be initiated. This move aligns with the Trump administration’s pattern of pursuing allegations of mortgage fraud against prominent Democrats viewed as political adversaries.

Cook, who has been a federal governor since May 2022, was reappointed to the board in September 2023, with her current term set to conclude in May 2038. She previously held a position on the Council of Economic Advisers under former President Barack Obama. The pressure from Trump comes as he has consistently criticized Powell for maintaining the benchmark lending rate, which has remained unchanged this year.

The escalating tensions between Trump and the Federal Reserve have become more pronounced, particularly as the central bank assesses the impact of U.S. tariffs on inflation. Trump has previously labeled Powell as a “numbskull” and a “moron” for his decisions regarding interest rates.

In an earlier instance, Trump suggested that the expensive renovation of the Fed’s headquarters could serve as grounds for Powell’s dismissal, although he later retracted that statement. Powell’s current term as chair is set to end in May 2026, leaving the central bank’s future direction uncertain amidst growing political pressures.

The ongoing confrontation highlights the complex relationship between U.S. monetary policy and political influence, raising concerns about the independence of the Federal Reserve in the face of external pressures. As this situation unfolds, the implications for economic policy and governance are closely being monitored by both analysts and the public.