The Trump administration is persisting in its attempt to remove Federal Reserve governor Lisa Cook. This comes two months after the Supreme Court allowed her to remain in her position while disputing the president’s decision to dismiss her over mortgage fraud accusations, which she denies.
In a 5-4 decision in June, the Supreme Court stated that Cook, who was nominated by President Joe Biden to the Fed’s Board of Governors, could retain her role as long as her lawsuit challenging her dismissal continues. The Trump administration is appealing a lower-court ruling that favored Cook.
Chief Justice John Roberts mentioned in a footnote that there is no restriction on President Donald Trump attempting again to dismiss Cook, granted she receives proper notice and a chance to contest it. Trump has expressed his intention to take immediate action following the court’s decision. A letter from White House aide Dan Scavino indicates that Trump is contemplating her removal, with August 26 set as a deadline for Cook to respond.
Roots of the Allegations
The removal attempt centers on a criminal referral by Bill Pulte, director of the Federal Housing Finance Agency, accusing Cook of mortgage fraud. She allegedly labeled two homes as her “primary residence,” one in Ann Arbor, Michigan, and another in Atlanta. Homeowners can benefit from lower mortgage rates when a property is listed as a primary home rather than a secondary or vacation residence.
Cook has vigorously defended herself against these charges. She argues that the president is attempting to remove her based on a contrived pretext because she refused to yield to political pressure and focused on setting interest rates for the public good. Her lawyer, Abbe Lowell, highlighted that Cook primarily resided in the Ann Arbor property since 2005, making it accurate to label it her primary residence in a 2021 refinancing application. She referred to her Atlanta condo as a primary residence in a subsequent document, which Lowell argues was an isolated error and not fraudulent intent.
An earlier application described the Atlanta condo as a “vacation home,” and during her Fed confirmation, Cook called it a second home. The White House letter repeats previous accusations.
According to Lowell, “These allegations remain unfounded just as they were a year ago when President Trump sought to dismiss Governor Cook and disturb the independence of the Federal Reserve.” He affirmed the intention to challenge any new attempts by Trump, maintaining Cook’s position and the Fed’s role.