Democratic Sen. Elizabeth Warren slammed President Donald Trump over his attempt to remove Federal Reserve governor Lisa Cook, calling the move an "authoritarian power grab that blatantly violates the Federal Reserve Act." The senator added in a statement that the decision "must be overturned in court.
House Minority Leader Hakeem Jeffries, on his end, said Trump is "trying to remove her without a shred of evidence that she has done anything wrong."
Trump announced on Monday night that Cook was "removed" from her position effective immediately over claims by Federal Housing Finance Agency William Pulte, who accused her of mortgage fraud.
"Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately," Trump said.
Cook, on her end, said Trump "purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022."
NBC News detailed that the Federal Reserve Act notes that Fed governors can only be removed "for cause" or wrongdoing. It has never been done before.
Cook has never been charged with any crime, and Trump's move is set to catalyze a court battle.
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