President Trump escalated his pressure campaign against the Federal Reserve on Wednesday, demanding the resignation of Governor Lisa Cook and signaling that further changes to the central bank’s leadership could be on the horizon.
“Cook must resign, now!!!” Trump posted on his Truth Social platform early Wednesday morning, linking to a Bloomberg article referencing a letter from Federal Housing Finance Agency head Bill Pulte. The letter, addressed to Attorney General Pam Bondi, urged an investigation into Cook over allegations related to two mortgages.
According to the letter dated August 15, Pulte alleged that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Later in the morning, The Wall Street Journal reported that Trump had privately told aides he was “considering attempting to fire” Cook.
Shifts on the Fed’s Board
The push against Cook comes during a period of transition at the Federal Reserve. Just last week, Trump nominated Council of Economic Advisers Chair Stephen Miran to fill the vacancy left by Adriana Kugler, who resigned from the Fed’s Board of Governors on August 8. If Cook were to step down, Trump would gain another opportunity to nominate a governor, further consolidating his influence over the central bank.
At the same time, the question of who will succeed Fed Chair Jerome Powell looms large. Powell’s four-year term as chair ends in May 2026, and Trump has said the list of potential replacements is “down to three or four” candidates. Trump has frequently pressed Powell to cut interest rates more aggressively, often deriding him as “Too Late.” Powell, first appointed by Trump in 2017 and later reappointed by President Joe Biden in 2021, has remained a frequent target of Trump’s criticism.
Ongoing Criticism of Fed Leadership
Trump has also attacked the Fed’s $2.5 billion renovation of its Washington, D.C., headquarters, calling it a “sort of” fireable offense for Powell. The two men met at the renovation site in late July, where Trump once again demanded faster rate cuts.
Powell’s role as Fed chair ends in 2026, but his separate term as a member of the Board of Governors runs until 2028. It remains unclear whether he will continue to serve on the board after stepping down as chair.
Meanwhile, speculation is building over possible successors. Reporting from CNBC indicated that as many as 11 names are under consideration, including Jefferies chief market strategist David Zervos, who argued Wednesday that the Fed has “never been independent.”
Fed Independence in the Spotlight
The mounting political rhetoric directed at the Fed underscores growing concerns about central bank independence. Trump’s calls for Cook’s resignation, his repeated criticism of Powell, and his threats to intervene in board appointments come just days before the annual Jackson Hole Economic Symposium, where Powell is scheduled to deliver one of his most closely watched policy speeches of the year.
With markets already attuned to the Fed’s rate outlook, the added layer of political pressure may cast an even bigger shadow over this week’s gathering of global central bankers and economists in Wyoming.
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