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Trump Fires First Black Woman Fed Governor, Bitcoin Advocate Takes Role
Trump – In a shocking move that has sent ripples through financial markets, President Donald Trump has dismissed Federal Reserve Governor Lisa Cook from her position, citing alleged mortgage fraud as grounds for her immediate removal.
Historic Dismissal Under “For Cause” Statute
The dismissal, announced in a two-page letter dated August 25, marks the first time in modern history that a sitting Fed governor has been fired by a president. Trump invoked a rarely used statute that permits the removal of central bank officials “for cause.”
Cook, who was appointed by former President Biden and became the first Black woman to serve on the Fed board, faces accusations of listing two properties as her primary residence to secure better mortgage rates. The Federal Housing Finance Agency (FHFA) has made a criminal referral regarding these allegations.
Mortgage Fraud Allegations Detailed
Trump’s dismissal letter outlined specific accusations against Cook, stating she signed documents claiming properties in both Michigan and Georgia as her primary residence within a two-week period. “It is inconceivable that you were not aware of your first commitment when making the second,” Trump wrote.
The president emphasized the need for public trust in Fed officials, noting their tremendous responsibility for setting interest rates and regulating banks.
Legal Challenges Expected
The firing has sparked immediate political backlash, with Representative Jerry Nadler calling the dismissal “clearly unlawful” and promising court challenges. Legal experts question whether the allegations meet the “for cause” standard required for Fed governor removal.
Bitcoin-Friendly Replacement Named
In a move that has caught crypto enthusiasts’ attention, Trump has tapped Stephen Miran, chair of the Council of Economic Advisers and a vocal Bitcoin supporter, as Cook’s temporary replacement. Miran is expected to serve through January 2026 pending Senate confirmation and could participate in the Fed’s crucial September meeting.
This development comes as the Fed board undergoes significant changes, with Governor Adriana Kugler recently resigning amid White House pressure for accelerated rate cuts.
