Trump dismissed the Federal Reserve governor accused of mortgage fraud

The president of the United States, Donald Trump, dismissed Lisa Cook late Monday, the Federal Reserve governor nominated by former president Joe Biden who was implicated in allegations of mortgage fraud.

Last week, Cook was reported by the Federal Housing Finance Agency for having falsified documents in various mortgage applications, claiming that two homes located in different parts of the country—one in the state of Georgia and another in Michigan—were her primary residences.

The Democratic economist committed this type of fraud because mortgage rates are usually higher for second homes or properties purchased to rent out. This conduct is being investigated by the Department of Justice. 

Trump meets with Federal Reserve Chairman, Jerome Powell | La Derecha Diario

Trump's letter announcing Cook's dismissal. 

"You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately," begins the letter addressed to Cook drafted by the White House and released by the Republican leader on Truth Social. 

"The Federal Reserve has a tremendous responsibility in setting interest rates and regulating member banks of the reserve. The American people must have full confidence in the honesty of the members responsible for setting policy and overseeing the Federal Reserve," the letter continues.

"In light of your deceptive and potentially criminal conduct in a financial matter, they can't have, and I do not have, that confidence in your integrity," Trump concluded. 

Cook clings to her position. 

The Democratic economist refused to resign despite the fraud allegation against her, describing the president's demands as intimidation to force her out of office. "I intend to take any questions about my financial record as a member of the Federal Reserve very seriously, so I am gathering the precise information to respond to any legitimate questions and provide the facts," Cook said in a statement.

In early August, another official who was part of the Federal Reserve Board of Governors and also appointed by Biden, Adriana Kugler, announced her early retirement to return to university teaching.