Fed Governor Cook Hires Hunter Biden’s Lawyer As Trump ‘Firing’ Puts Powell Back In The Hot Seat
ZeroHedge.com
Update (0830ET): Mainstream media is abuzz this morning with the news of Trump’s firing of Fed Governor Cook over her alleged mortgage cheating. Given that she has apparently refused to leave, this puts The Fed (and in particular Chair Powell) in an awkward position.
As Jim Bianco explains in a brief post on X:
If they allow her to continue with her duties as Fed Governor, starting this morning, and the courts find that the President does have the authority to fire her, even if it’s months later during an appeal, anything she does on behalf of the Fed as a Governor starting today will not be valid.
And the Fed could be held responsible for allowing a non-employee to continue to act like an employee.
Restated, if the Fed allows her to stay and continue to be a Governor, and the court rules that Trump can fire her (again, even if it is later in an appeal), then Jay Powell has potentially committed a “for-cause” offense for which he could be fired.
(allowing a non-Fed employee to make decisions and policy on behalf of the Federal Reserve.)
Additionally, Cook has hired former first son Hunter Biden’s lawyer, Abbe Lowell, to represent her.
In a statement, Lowell vowed to take “whatever actions are needed” to stop what he described as Trump’s “illegal action.”
As a reminder, Fed Governors resigning is not unusual in recent years:
- 2021: Dallas Fed president Kaplan busted for suspicious stock trades, resigns
- 2021: Boston Fed president Rosengren busted for suspicious stock trades, resigns
- 2022: Fed vice chair Richard Clarida busted for suspicious trades, resigns
- 2025: Lisa Cook vows to stay on
This is far from over.
* * *
Update (2330ET): Former Fed governor Lisa Cook says she will not resign, the Washington Post reports, citing a statement from Cook.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said through a spokeswoman: WaPo
“I will continue to carry out my duties to help the American economy as I have been doing since 2022,” Cook said
Good luck with that plan when the FBI turns up tomorrow at your place of work.
* * *
Promises made… promises kept…
On Friday, President Trump warned that he would fire Federal Reserve Governor Lisa Cook who allegedly “falsified bank documents and property records to acquire more favorable loan terms” if she didn’t resign…
.@POTUS on Federal Reserve Governor Lisa Cook: “I’ll fire her if she doesn’t resign. What she did was bad, so I’ll fire her if she doesn’t resign.” pic.twitter.com/1vEv7k7ar8
— Rapid Response 47 (@RapidResponse47) August 22, 2025
She immediately played the victim card, claiming she “would not be bullied”.
But now that is moot as President Trump has fired her, effective immediately:
” I have determined that there is sufficient cause to remove you from your position…
…
The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks. The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve.
In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.
At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
Full letter below:
Trump will now have a majority on the Fed Board…
If/when Cook leaves/is fired, Trump will have a majority on the Fed board pic.twitter.com/6Hxn8f2PPw
— zerohedge (@zerohedge) August 21, 2025
Trump was quick to make note of her dismissal on Truth Social:
Reminder, The Fed is not political… etc, etc…
Exactly 6 years later, Trump has an answer to Dudley’s op-ed https://t.co/sHwvmxAKhp
— zerohedge (@zerohedge) August 26, 2025
There is a silver lining for her…
The good news is Cook will soon be able to refinance at a much lower rate. https://t.co/5Coxyp8iDd
— zerohedge (@zerohedge) August 26, 2025
How long before Democrats decry this racist act and demand it be appealed all the way to SCOTUS?
Or will she skulk away sheepishly admitting she broke the law rather than face the discovery that Bill Pulte has already exposed?
There was a notable market reaction to this move with gold rallying as the dollar dropped and short-end bonds are bid (stocks lower)…
With rate-cut odds rising for Sept and more for December.