U.S. President Trump announced the immediate removal of Federal Reserve Governor Cook from her position, citing alleged loan fraud.
On the 25th, he publicly posted a letter to Cook on social media, removing her from her position at the U.S. central bank on the grounds that she had falsified documents in a mortgage application.
In the letter, Trump wrote: “The American people must have complete trust in the members entrusted with policymaking and supervising the Federal Reserve. Given your deceptive conduct regarding financial matters, which may even constitute criminal behavior, they cannot, and I also do not believe you are trustworthy.”
Cook is the first African-American woman to join the Federal Reserve Board of Governors.
Last week, Trump asked Cook to resign over mortgage issues in Michigan and Georgia. Afterwards, while visiting a themed museum at the White House, Trump told reporters: “If she doesn’t resign, I’ll fire her.”
However, at that time Cook emphasized that she would "absolutely not be forced to resign because of threats."
If Trump successfully removes Cook, he will have secured four seats and could hold a majority on the Federal Reserve’s seven-member board. During his first term, Trump had already appointed two of the current governors, and recently nominated his chief economic adviser, Milan, to fill the vacancy left by Kugler's sudden resignation.