President Trump has again threatened to remove Federal Reserve Governor Lisa Cook from the Fed’s governing board, citing unproven allegations of false statements on mortgage applications. The renewed effort follows a previous attempt that was blocked by the Supreme Court.
Deputy White House Chief of Staff Daniel Scavino sent a letter to Cook this week demanding she respond to charges first raised by Trump ally William Pulte, who has accused her of mortgage fraud affecting Fannie Mae and Freddie Mac. In the letter, Scavino wrote: “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.”
Cook has denied any wrongdoing. Her attorney, Abbe Lowell, said the 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 added there is no valid cause for removal and said they will challenge any attempt to oust her and defend the Fed’s independence.
ABC News first reported the renewed push. The earlier effort by Trump came amid broader criticism of the Fed’s interest-rate policy and threats to fire then-Chair Jerome Powell. Powell’s term as Fed chair expired in May, though he remains on the board.
In June, the Supreme Court ruled 5–4 that Federal Reserve governors occupy a special institutional role and may be removed by the president only for cause. The decision means lower courts will now determine whether the allegations against Cook meet the legal standard for removal.