President Trump has again signaled he wants Federal Reserve Governor Lisa Cook removed from the Fed’s governing board, citing unproven allegations of mortgage fraud. The renewed action comes about a month after the Supreme Court blocked his earlier attempt to oust her.
This week Deputy White House Chief of Staff Daniel Scavino sent a letter to Cook demanding that she respond to claims that she made false statements on mortgage applications. The allegations were publicized by Trump ally William Pulte, who first raised the matter last year.
In the letter, Scavino wrote that even if Cook’s 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 lawyer, Abbe Lowell, said the accusations are baseless and reiterated that there is no valid reason to remove her. “These 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 said, adding that they will challenge the latest effort to preserve her position and the Fed’s independence.
ABC News first reported the renewed push. The dispute follows a period of intense tension between the White House and the central bank. Trump had been publically critical of the Fed for not cutting interest rates more aggressively and previously threatened to remove then-Fed Chair Jerome Powell. Powell’s term as chair ended in May; he remains a member of the Fed board.
In a June ruling, the Supreme Court held 5–4 that the Federal Reserve occupies a unique role in the U.S. government and that presidents may remove Fed governors only for cause. The Court’s decision means lower courts will need to determine whether the allegations against Cook meet that standard of cause.
