Donald Trump has threatened to fire an Oxford University graduate over allegations they committed mortgage fraud.
Lisa Cook studied a philosophy, politics, and economics (PPE) degree and was a recipient of the Marshall scholarship, one of Oxford’s most prestigious scholarships available to U.S students.
Now working as a Federal Reserve Governor, President Trump has threatened to fire her “immediately” over the allegations that Lisa claimed two primary residences in 2021 to get better mortgage terms.
Lisa Cook, via LinkedIn
In 2022, Lisa became the first black woman to serve as a governor of the Federal Reserve Board – the central bank in the U.S responsible for controlling inflation rates – after being appointed by former President Joe Biden.
She also holds degrees from University of Oxford and Spelman College, and she has taught at Michigan State University and Harvard University’s Kennedy School of Government.
Allegations of her misconduct came last week from Bill Pulte, an appointee of Trump who works for the agency that regulates mortgage companies Fannie Mae and Freddie Mac.
After Trump threatened to take action against her on his social media app Truth Social, Lisa shared: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so.”
She added: “I will not resign.”
Law that protects the federal agency means that the president is not allowed to simply fire members of the board and has to demonstrate that its “for cause” meaning that misconduct or neglect of duty has occurred.
If Lisa Cook is sacked from the Fed’s board, it could mean that Trump could assign a loyalist of his choosing as her replacement, threatening the independence of the Federal Reserve Agency from presidential influence.
Other implications of Cook losing her role are that it could affect the reputation of the agency, causing board investors to lose trust that fed’s can effectively control inflation and therefore push up their bond prices.
As a result, U.S citizens could then experience higher interest rates on mortgages or credit cards.
Featured image via Aaron Schwartz – Pool via CNP/Shutterstock
Lisa Cook has been contacted for comment.
