Federal Reserve governor Lisa Cook is facing removal after President Donald Trump accused her of falsifying mortgage documents, in a confrontation that could shift the balance of power inside the US central bank.

Cook’s 14-year term, which began in 2022 under President Joe Biden, was not due to expire until 2038. Her early dismissal would open the door for Trump to nominate a replacement, giving him the chance to secure a four-seat majority on the seven-member Board of Governors.

The president disclosed his decision in a letter posted on Truth Social, where he said allegations raised by a White House ally provided “sufficient cause” for her removal. He claimed Cook had made false statements on mortgage loans, calling the alleged conduct “deceitful and possibly criminal.”

Cook, an economist and the first Black woman appointed to the Fed board, has not publicly responded to the allegations. Her forced exit would mark a rare intrusion into the independence of the Federal Reserve, which has traditionally been insulated from partisan politics.

The standoff comes as Trump continues to pressure the Fed to cut interest rates, with the potential dismissal likely to intensify concerns over political interference in monetary policy at a time of heightened economic uncertainty.