President Trump has once more targeted Federal Reserve Governor Lisa Cook for removal from the central bank’s governing board. This comes after previous efforts were thwarted by the Supreme Court. The charges involve unverified claims of mortgage fraud.
Deputy White House Chief of Staff Daniel Scavino has sent a letter to Governor Cook. He urged her to address allegations that she falsified mortgage application details. William Pulte, a Trump ally and overseer of Fannie Mae and Freddie Mac, brought these charges to light.
Scavino stated, “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.”
Governor Cook has firmly denied the accusations. Her attorney, Abbe Lowell, commented that the allegations are baseless and resemble previous attempts by Trump to disrupt the Federal Reserve’s independence.
Lowell noted, “There is no valid cause for removing Governor Cook. As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed.”
This renewed effort against Cook was reported by ABC News. Previously, Trump’s dissatisfaction with the Federal Reserve stemmed from its cautious approach to interest rate cuts. Along with Cook, he also threatened then Fed Chair Jerome Powell. Powell’s tenure as chair ended in May, but he remains on the board.
The Supreme Court’s recent decision emphasizes the Federal Reserve’s unique governmental role, restricting presidential removals of Fed governors to justified reasons. Lower courts will determine if the allegations against Cook meet such criteria.