President Donald Trump has said he will immediately remove Federal Reserve official Lisa Cook from her position, a major escalation in his battle against the US central bank.<\/p>\n
In an announcement made on his social media platform Truth Social, Trump posted a letter addressed to Cook in which he informed her of his decision to remove her from the bank’s board of governors with immediate effect.<\/p>\n
He said there was “sufficient reason” to believe she had made false statements on mortgage agreements, and cited his powers under the constitution to remove the senior official.<\/p>\n
Neither Cook or the Federal Reserve has commented on the sacking, which the president announced late on Monday.<\/p>\n
Trump has put increasing pressure on the Fed – especially its chair Jerome Powell – in recent weeks over what he sees as the central bank’s unwillingness to lower interest rates. He has repeatedly floated the possibility of firing Powell.<\/p>\n
His decision to fire Cook, who is one of seven members of the Fed’s board of governors and the first African American woman to serve in the role, is believed to be unprecedented in the central bank’s 111-year history. <\/p>\n
It is also likely to raise legal questions, with experts suggesting the White House will need to demonstrate – potentially in court – that it had sufficient reason to fire her.<\/p>\n
According to Trump’s letter, Cook signed one document attesting that a property in Michigan would be her primary residence for the next year. <\/p>\n
“Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year,” the president said.<\/p>\n
“It is inconceivable that you were not aware of your first commitment when making the second,” he wrote. <\/p>\n
The president had called for her resignation last week over the allegation of mortgage fraud, which was first made in a public letter from housing finance regulator, Bill Pulte, a Trump ally, to Attorney General Pam Bondi.<\/p>\n
The housing finance regulator called the letter a “criminal referral” and urged the justice department to investigate. It is not clear whether an investigation has been opened.<\/p>\n