Trump Attempts to Remove Fed Governor Cook Over Unproven Allegations

President Trump is once again threatening to remove Federal Reserve Governor Lisa Cook. The threat is based on unproven allegations of mortgage fraud. This move comes just over a month after the Supreme Court blocked his previous attempt to fire her.

Deputy White House Chief of Staff, Daniel Scavino, has engaged Cook with a letter demanding her response to claims that she provided false information on mortgage applications. These accusations originated from Trump ally William Pulte of Fannie Mae and Freddie Mac.

“Even if your conduct does not rise to the level of 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 wrote.

Cook maintains her innocence, asserting that the allegations remain without foundation. Her attorney, Abbe Lowell, confirmed this stance, arguing there’s no valid reason to remove Cook. Lowell stated, “We will challenge this latest pretext and preserve her position and the historic role of the Fed.”

Trump’s earlier effort to remove Cook occurred when he was critical of the Federal Reserve’s interest rate policies. During this period, he also considered dismissing Jerome Powell, the Fed Chair then. Although Powell’s term expired in May, he continues as a board member.

In June, a Supreme Court ruling underscored the Federal Reserve’s unique standing in the U.S. government. The decision specified that presidents can only remove Fed governors for cause. Lower courts will now determine if the accusations against Cook meet this criterion.