Key facts
- President Donald Trump is initiating a new attempt to remove Federal Reserve Governor Lisa Cook.
- A letter from the White House notified Cook that her removal was being considered.
- Cook has been given until August 26 to respond to the allegations.
- The allegations against Cook involve mortgage fraud concerning two properties.
- Cook denies the allegations and states the action is politically motivated.
President Donald Trump is renewing his effort to remove Federal Reserve Governor Lisa Cook from her position, two months after the Supreme Court allowed her to continue serving while she contests the allegations.
In a letter sent this week, the White House notified Cook that Trump is "considering removing you from your position" and cited the Supreme Court's requirement for proper notice, giving her until August 26 to respond to allegations of mortgage fraud. These allegations, which remain untested in court, stem from a criminal referral made by Bill Pulte, director of the Federal Housing Finance Agency, accusing Cook of declaring two different homes as her "primary residence" to obtain favorable mortgage terms.
Cook has vehemently denied any wrongdoing, asserting that the attempt to remove her is based on a "manufactured pretext" because she refused to yield to political pressure regarding interest rate decisions. Her attorney, Abbe Lowell, has argued that Cook has mostly lived in one of the properties since 2005, making the notation accurate, and that any conflicting notation on another property was an "isolated notation" without intent to defraud.
The Supreme Court, in a 5-4 decision in June, ruled that Cook was entitled to notice and an opportunity to respond before any removal could be finalized, leaving the door open for Trump to pursue the matter again. Following the ruling, Trump indicated he would "take appropriate action immediately" to remove Cook, whom he accused of committing wrongdoing that could impact vital U.S. economic decisions.