Washington, DC, August 26(HS)

President Donald Trump has ordered the removal of Federal Reserve Governor Lisa Cook, accusing her of making false statements on mortgage applications — a decision that marks an unprecedented clash between the White House and the U.S. central bank.

In a letter posted late Monday on his Truth Social platform, Trump claimed Cook committed misrepresentation by attesting to two different homes as her “primary residence” within weeks of each other. “It is inconceivable you were unaware of your first commitment,” he wrote.

Cook, the first African American woman to serve on the Fed’s Board of Governors, has not yet commented, nor has the Federal Reserve. She previously rejected the allegations as politically motivated, vowing she would not be “bullied” into resignation.

Legal experts note the dismissal could spark a constitutional standoff, as Federal Reserve independence — formally established in 1951 — has long shielded governors from White House firings. Trump’s move is believed to be the first forced removal in the Fed’s 111-year history.

The firing comes amid Trump’s escalating feud with Fed Chair Jerome Powell, whom he has derided for resisting aggressive rate cuts. Markets reacted swiftly to the news, with the U.S. dollar slipping in Asian trading on expectations that Cook’s replacement may align more closely with Trump’s demand for lower interest rates.

Cook was one of seven members of the Fed board. Her removal, if upheld, could reshape the balance of one of the world’s most powerful financial institutions.

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Hindusthan Samachar / Jun Sarkar