Trump demands the resignation of a Federal Reserve governor, escalating the pressure on the central bank

In a recent development, US President Donald Trump has called for the resignation of Federal Reserve Governor Lisa Cook via his Truth Social platform. This request comes in response to a series of events involving Cook and the Federal Housing Finance Agency (FHFA).

Lisa Cook was appointed to the Federal Reserve Board of Governors in May 2022 and was reappointed to the board in September 2023, securing a term that ends in 2038. Prior to her appointment, she served on the Council of Economic Advisers under former president Barack Obama.

The call for Cook's resignation was prompted by a Bloomberg news report about FHFA director Bill Pulte, a staunch ally of Trump's, calling for greater scrutiny of Cook. In a subsequent letter to the US Attorney General, Pulte suggested that Cook might have committed a criminal offense.

Trump's call for Cook's resignation is not the first time he has criticised the Federal Reserve. He has repeatedly expressed dissatisfaction with Fed Chair Jerome Powell, calling for the benchmark lending rate to be lowered this year. Trump has also publicly criticised Powell, referring to him as a "numbskull" and a "moron" in recent months.

It is worth noting that the Fed's Vice Chair, Lael Brainard, has suggested that a 50 basis point rate cut next month does not seem warranted. This statement was made in light of the current economic conditions.

Powell's term as Fed chair ends in May 2026. It is not yet clear if an investigation into the allegations against Cook will take place.

This news follows Trump's previous suggestion that an overly costly renovation of the Fed's headquarters could be a reason to oust Powell, but later backing off the threat. The ongoing developments at the Federal Reserve are being closely watched by financial markets and economists alike.