Trump promises to take an unprecedented step if the governor of the Fed does not resign

President Donald Trump said Friday that he would eliminate Lisa Cook from her role in the US Central Bank. If she does not voluntarily, days after she made it clear that she would not be “harassed” to leave her work as governor of the Federal Reserve.

“I will say goodbye if you don’t give up,” Trump told reporters.

The president’s call for the resignation of Cook comes from a criminal referral to the Bill Ablicte Justice Department, director of the Federal Housing Finance Agency of the United States, accusing Cook of committing mortgage fraud in 2021, before joining the Fed.

About said that his agency has obtained documents that seem to show that Cook falsified “residence states for a residence based in Ann Arbor, Michigan and a property based in Atlanta, Georgia, to ensure lower interest rates and more favorable loan terms.”

If Cook is retired from his work, that would give Trump the opportunity to nominate another of his allies to join the Fed, who has traditionally been protected from politics. Earlier this month, Trump elected Stephen Miran, president of the White House Economic Advisors Council and a fierce sponsor of his rates, to replace Adriana Kugler, who abruptly renounced his position as governor of the Fed.

However, in a statement issued on Wednesday, Cook made it clear that he had no plans to resign.

“I have no intention of being intimidated to give up my position due to some questions raised in a tweet,” he wrote. “I intend to take any question about my financial history as a member of the Federal Reserve, so I am collecting the precise information to answer any legitimate question and provide the facts.”

Cook, a candidate of former President Joe Biden, assumed his role in the Fed in 2022, becoming the first black woman to serve at the Board of Governors of seven members of the Central Bank of the USA. UU. His term will expire in 2038.

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According to the Federal Reserve Law of 1913, the governors of the FED, including the President, can only be eliminated by the cause by the President. However, no president has done it before.

Senator Elizabeth Warren (D-Mass.), The classification member in the Senate Banking Committee, challenged Trump’s authority to fire Cook, claiming that her motivation to take the unprecedented step would be politically motivated.

“President Trump cannot illegally say goodbye to the members of the Board of the Independent Fed,” Twitter previously wrote. “Anyone can see that they are trying to find an scapegoat for their failure in reducing costs for Americans.”

Trump, however, has relentlessly attacked the Fed and his boss, Jerome Powell, about his reluctance to yield to his lowest interest rates.

In a speech before the annual economic symposium of the Fed in Jackson Hole, Wyoming, on Friday, Powell left the door open to a rate cut, but did not specify when it could happen.