Trump fires Fed governor Lisa Cook

President Trump fired Federal Reserve governor Lisa Cook on Monday, as the White House attempts to exert more influence over the central bank.Why it matters: It is a legally dubious move that further threatens the central bank's political independence.What they're saying: Trump cited Article II of the Constitution and the Federal Reserve Act of 1913 to tell Cook she was "removed" from her position, "effective immediately," according to a letter the White House rapid response team shared on X.Driving the news: The White House says it has legal cover to fire Cook for cause after the top housing regulator accused her of mortgage fraud. Bill Pulte, the head of the Federal Housing Finance Agency, who has helped lead the charge against the Fed, referred Cook to the Justice Department for criminal prosecution. Cook said in a statement last week that she had "no intention of being bullied to step down from my position because of some questions raised in a tweet" and that she was "gathering the accurate information to answer any legitimate questions and provide the facts."Asked by reporters on Friday about the president's threats to fire her, she declined to comment.Between the lines: Pulte, who has been among the most outspoken among Trump officials about the Fed, alleged in a letter earlier this month that she "falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraudulent."Threat level: Trump has put pressure on the Fed to slash interest rates, as the White House tries to install its own officials who will promote such an effort.The White House first tried to build a case against Fed chair Jerome Powell over the central bank's handling of building renovations. Then they took aim at Cook.Context: Cook's term was not supposed to expire until 2038.The Biden appointee is the first Black woman to serve as a Fed governor.The bottom line: If the White House is successful in ousting Cook, it would be the second vacancy in less than a month, handing Trump another opportunity to shape the influential group of officials.Adriana Kugler resigned earlier this month. The White House nominated Stephen Miran, the chair of the Council of Economic Advisors, to step in until the term expires in January. Editor's note: This is a breaking news story. Please check back for updates.Neil Irwin contributed reporting.

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