US President Donald Trump has ordered Federal Reserve Governor Lisa Cook to be removed after unproven allegations of mortgage fraud, a surprising move that has raised concerns about the independence of the central bank.

The claims were made last week by Bill Pulte, director of the Federal Housing Finance Agency, who said that Professor Cook owned two primary homes in 2021, one in Michigan and another in Atlanta.

Pulte, appointed by Trump earlier this year, suggested that Cook may have been seeking better mortgage terms, as interest rates tend to be higher for second homes.

On Monday night, Trump shared a letter on social media saying that Cook, one of seven members of the Federal Reserve Board of Governors, was being dismissed “effective immediately” under his authority in the US Constitution and the 1913 Federal Reserve Act.

Citing the mortgage claims, Trump wrote that there was “sufficient reason to believe you may have made false statements on one or more mortgage agreements.”

He emphasized that the Federal Reserve plays a vital role in setting interest rates and regulating banks, and Americans must be able to trust its leaders.

Trump also accused Cook of “gross negligence in financial transactions” that called her competence and trustworthiness into question.

Cook denied the allegations and said she would not resign, stating that Trump had no legal authority to fire her.

Her lawyer, Abbe Lowell, described Trump’s actions as a “bullying reflex” with no proper legal basis, promising to take all necessary steps to block what they consider an illegal attempt.

Professor Cook was appointed to the Federal Reserve by President Joe Biden in 2022 and is the first Black woman to serve as a governor.

Her nomination faced strong opposition from most Senate Republicans but was confirmed after a 50–50 vote, with Vice President Kamala Harris casting the deciding vote.