In a stunning announcement, President Donald Trump posted on Truth Social that he has demanded the removal of Lisa Cook, one of the governors of the US central bank, amidst allegations of mortgage fraud. This decision escalates his ongoing conflict with the Federal Reserve, provoking criticism from Democrats who perceive it as an unprecedented act of political interference. Cook was appointed in 2022 and is noted for becoming the first African American to occupy such a role.

Trump's letter alleges that Cook falsified documents to secure loans for two primary residences in different states, stating: It is inconceivable that you were not aware of your first commitment when making the second... It is impossible that you intended to honor both.

While CNN has verified that Cook listed two homes as primary residences, it remains uncertain if she disclosed this to her lenders. Cook has not been formally charged with any crimes and intends to contest her dismissal, arguing that Trump lacks valid grounds for his decision.

The controversy raises questions about the Federal Reserve's independence and the power of the presidency to remove its officials. Legal experts have expressed skepticism about whether Trump's actions constitute just cause.

The Federal Reserve plays a vital role in setting monetary policy and regulating financial institutions in the US, and members are expected to operate independently of political influence. As markets digest the potential fallout from this decision, observers await further developments.