The Trump administration is pressing forward with its attempt to dismiss Federal Reserve governor Lisa Cook, despite a Supreme Court decision allowing her to stay in her position. This comes amid ongoing allegations of mortgage fraud against Cook, which she has consistently denied.
In a 5-4 decision in June, the Supreme Court ruled that Cook, appointed to the Fed’s Board of Governors by President Joe Biden, could maintain her role while she contests the termination. The Trump administration is challenging a lower court’s ruling that favored Cook. Chief Justice John Roberts noted that President Donald Trump could attempt Cook’s dismissal again, provided proper notice and a chance to contest it are given. Trump has signaled his intent to proceed with this action.
White House aide Dan Scavino recently informed Cook through a letter that Trump is “considering removing you from your position,” granting her until August 26 to respond in accordance with the Supreme Court’s stipulation for proper notice.
The firing attempt is linked to a criminal referral from Bill Pulte, director of the Federal Housing Finance Agency, accusing Cook of mortgage fraud by listing two different homes as “primary residences.” This designation can lead to more favorable mortgage terms than those available for secondary homes.
Cook has vigorously defended herself, arguing that the president’s actions are politically motivated rather than based on legitimate grounds. Her lawyer, Abbe Lowell, stated that Cook has primarily resided in her Ann Arbor home since 2005, which justified its designation as a “primary residence” in a 2021 mortgage refinancing application.
In June 2021, Cook purchased a condo in Atlanta, and in a July document, also labeled it as a “primary residence.” Lowell characterized this as an “isolated notation” without fraudulent intent. An earlier application had described the Atlanta condo as a “vacation home,” and Cook referred to it as a second home in federal filings during her appointment process.
The recent White House communication reiterates allegations from the previous year. Lowell criticized these as baseless attempts to undermine the Federal Reserve’s independence. “No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent — there is no valid cause for removing Governor Cook,” Lowell stated, emphasizing their commitment to defending Cook’s position.
