Trump Administration Pursues Dismissal of Fed Governor Lisa Cook
Efforts to remove Federal Reserve governor Lisa Cook continue as the Trump administration takes steps to terminate her position. This follows a Supreme Court decision two months ago, which allowed Cook to maintain her role while contesting the president’s attempt to dismiss her over mortgage fraud allegations, which she denies.
In June, the Supreme Court ruled 5-4 in Cook’s favor, allowing her to remain in her position, which she was appointed to by President Joe Biden, pending her lawsuit. Meanwhile, the Trump administration is challenging a lower-court ruling that supported Cook.
Chief Justice John Roberts noted that there is no legal barrier preventing former President Donald Trump from attempting to fire Cook again, provided she receives proper notice and the opportunity to contest the decision. Trump has since vowed to take “appropriate action immediately.”
According to a letter obtained by The Associated Press, White House aide Dan Scavino informed Cook that Trump is “considering removing you from your position,” while acknowledging the Supreme Court’s requirement for proper notice, giving her until August 26 to respond.
The dismissal attempt is linked to a criminal referral from Bill Pulte, director of the Federal Housing Finance Agency, accusing Cook of mortgage fraud. The allegations suggest she declared two homes — one in Ann Arbor, Michigan, and another in Atlanta — as “primary residences,” which could secure more favorable mortgage terms.
Cook has consistently defended herself, asserting that the dismissal effort is politically motivated and based on unfounded allegations. She states that her decisions on interest rates have always prioritized what benefits the American people.
Attorney Abbe Lowell, representing Cook, emphasized in a November letter that Cook primarily resided at the Ann Arbor property since 2005, justifying its classification as her “primary residence” in a refinancing application. He described a similar reference to an Atlanta condo as a “primary residence” as an “isolated notation” without intent to defraud.
The White House’s recent correspondence largely reiterates the previous year’s allegations. Lowell refuted these claims, stating, “These allegations are as baseless now as they were a year ago when President Trump tried to remove Governor Cook and interfere with the independence of the Federal Reserve.”
Lowell further asserted, “No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent — there is no valid cause for removing Governor Cook. As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed.”
