Trump Administration’s Renewed Efforts to Dismiss Federal Reserve Governor Lisa Cook

The Trump administration is actively pursuing the dismissal of Federal Reserve Governor Lisa Cook, continuing efforts even after the Supreme Court allowed her to retain her position amid allegations of mortgage fraud, which she denies.

In June, the Supreme Court ruled 5-4 in favor of Cook, enabling her to keep her role while her lawsuit challenging the dismissal progresses. Cook was nominated to the Fed’s Board of Governors by President Joe Biden. Despite a favorable lower-court ruling for Cook, the Trump administration is appealing the decision.

Chief Justice John Roberts, in his opinion, noted that President Donald Trump could attempt to dismiss Cook again, with proper notice. Trump expressed intentions to pursue this course of action immediately. A letter from White House aide Dan Scavino informed Cook that Trump was considering her removal and gave her until August 26 to contest it, citing the Supreme Court’s requirement for proper notice.

The dismissal attempt is linked to accusations made by Bill Pulte, director of the Federal Housing Finance Agency. Pulte alleged Cook committed mortgage fraud by declaring two properties as her “primary residence”—one in Ann Arbor, Michigan, and another in Atlanta—thus potentially benefiting from preferable mortgage terms reserved for primary homes.

Cook has actively defended herself, claiming the president sought her removal based on fabricated allegations, as a response to her dedication to setting interest rates based on the best interest of the American public. Her attorney, Abbe Lowell, argued in a letter that Cook mostly resided in the Ann Arbor property since purchasing it in 2005, validating its designation as her “primary residence” during the refinancing process in June 2021.

Lowell explained the Atlanta condominium was mistakenly referred to as a “primary residence” in a July 2021 document, identifying it as an “isolated notation” without fraudulent intent. A prior mortgage application in May 2021 listed the Atlanta condo as a “vacation home.” Cook also labeled it a second home in federal filings related to her confirmation as a Fed governor.

The latest White House communication reviews the previous allegations.

“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 stated in a release.

Lowell emphasized that according to Supreme Court precedent and factual evidence, no valid grounds exist for Cook’s removal. He assured of contesting any further pretexts and maintaining her position at the Federal Reserve.