Trump Revives Effort to Oust Fed Governor Lisa Cook Over Allegations

President Trump is once more seeking the removal of Federal Reserve Governor Lisa Cook due to allegations of mortgage fraud. These claims remain unproven. A recent attempt by Trump to dismiss Cook was halted by the Supreme Court.

Deputy White House Chief of Staff Daniel Scavino has issued a letter to Cook, demanding a response to accusations of providing false statements on mortgage applications. Trump ally William Pulte, associated with Fannie Mae and Freddie Mac, initially raised these charges.

“Even if your conduct does not rise to the level of a felony offense, it appears to demonstrate a level of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator,” Scavino expressed in the letter.

Cook has refuted these claims. Her attorney, Abbe Lowell, stated, “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 emphasized there is no valid reason for Cook’s dismissal, pledging to challenge this renewed effort.

ABC News initially reported on Trump’s renewed push. Previously, Trump criticized the Federal Reserve for its cautious approach to interest rate cuts, also threatening former Fed Chairman Jerome Powell with removal. Powell’s tenure as chair ended in May, though he remains on the board.

In June, the Supreme Court determined in a 5-4 decision that the Federal Reserve holds a unique status within the government, allowing presidents to remove Fed governors only for just cause. Lower courts will evaluate if the allegations against Cook meet this criterion.