Trump weighs removing Fed governor Lisa Cook

President Trump has notified Federal Reserve Governor Lisa Cook that he is considering removing her, according to officials familiar with the communication. The letter gives Cook three weeks to respond, a move officials said could trigger concerns about the central bank’s independence.

Officials said interest-rate traders were waiting for additional details and that any market reaction was still pending. The Federal Reserve and the White House did not immediately comment, officials added.

White House letter sets an Aug. 28 deadline

Officials said the White House letter told Cook the president was “considering” removal and established a deadline for her reply. According to officials, Cook must respond by August 28, 2026.

Officials said the communication did not lay out the allegations or reasoning behind the possible action. With the underlying claims not specified, officials said market participants were closely watching for clarifying steps.

Concerns raised about central bank independence

Officials said the action could be viewed as political pressure on the Federal Reserve. They added that such perceptions can become a factor in how investors and the public assess the central bank’s ability to make decisions without interference.

Officials also said the situation could complicate policymaking around interest rates. They noted that traders were awaiting further information, including whether any subsequent administrative or legal process would follow.

What markets are watching next

Officials said markets will monitor for any formal referral or legal action before the August 28, 2026 deadline. They added that follow-up steps, if any, would be central to how the issue is interpreted by participants in rates markets.

For now, officials emphasized that the president has indicated he is considering the step, rather than announcing a final decision. In the absence of additional public detail from the Fed or the White House, uncertainty remains over what allegations are involved and what process could unfold next.