Trump Administration Seeks to Dismiss Federal Reserve Governor Lisa Cook

The Trump administration is continuing its efforts to remove Federal Reserve Governor Lisa Cook. This follows a Supreme Court decision two months ago allowing her to remain in her position while contesting the president’s termination attempt over denied mortgage fraud allegations.

In June, the Supreme Court, by a narrow 5-4 margin, decided that Cook, nominated to the Fed’s Board by President Joe Biden, could retain her job as her lawsuit against the termination continued. The Trump administration is appealing a prior court decision in Cook’s favor.

Chief Justice John Roberts, in a footnote, mentioned that nothing prevents President Donald Trump from making another attempt to dismiss Cook if given proper notice and opportunity to challenge. Trump expressed his intention to act swiftly. A letter from White House aide Dan Scavino, obtained by the Associated Press, informed Cook of Trump’s consideration to remove her, noting the Supreme Court’s conditions, and giving her until August 26 to contest the decision.

This dismissal effort arises from a criminal referral last August by Bill Pulte, director of the Federal Housing Finance Agency, accusing Cook of mortgage fraud by marking two homes—one in Ann Arbor, Michigan, and one in Atlanta—as her primary residences. Primary homes usually qualify for lower mortgage rates or smaller down payments compared to secondary residences.

Cook has strongly defended herself against these claims, arguing President Trump aims to remove her on a false basis due to her resistance to political pressure and her commitment to setting interest rates based solely on public interest. Her lawyer, Abbe Lowell, stated in a November letter that Cook largely resided at her Ann Arbor home since its purchase in 2005. Therefore, she correctly labeled it as her primary residence in a June 2021 refinancing application.

Cook purchased the Atlanta condo in July 2021 and also called it her primary residence at that time. Lowell described this as an isolated notation without fraudulent intent, noting an earlier May 2021 mortgage application classified the condo as a vacation home. During her confirmation process as Fed governor, Cook also listed it as a secondary residence in federal documentation.

The recent White House notification reiterates year-old accusations. Lowell responded that these allegations remain unfounded, as they were a year prior when Trump initially sought Cook’s removal, disrupting Fed independence. He emphasized that facts and Supreme Court precedent show no legitimate basis for Cook’s dismissal, and he pledged to challenge the ongoing pretext while protecting her role and the Fed’s integrity.