President Trump has once again warned Fed Governor Lisa Cook that he wants to remove her from the central bank’s governing board, over untested allegations of mortgage fraud. An earlier effort to fire Cook was blocked by the Supreme Court.
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Kevin Dietsch/Getty Images North America
President Trump has renewed his threat to dismiss Federal Reserve Governor Lisa Cook due to unsubstantiated claims of mortgage fraud. This action follows a Supreme Court decision that halted a similar attempt over a month ago.
Deputy White House Chief of Staff Daniel Scavino has issued a letter to Cook, insisting she address allegations of making false statements on mortgage applications. These accusations were initially put forward by Trump ally William Pulte, who is in charge of Fannie Mae and Freddie Mac.
“Even if your actions do not constitute a felony, they seem to reflect gross negligence in financial dealings, raising doubts about your capability and reliability as a financial regulator,” Scavino stated.
Cook maintains her innocence regarding the accusations.
“These claims remain as unfounded now as they were when President Trump first attempted to dismiss Governor Cook and meddle with the Federal Reserve’s autonomy,” said Cook’s attorney, Abbe Lowell. “There is no legitimate reason to remove Governor Cook. As before, we will contest this latest attempt and uphold her position and the Federal Reserve’s historic role.”
The renewed effort to discharge Cook was initially reported by ABC News.
Trump’s prior attempt to remove Cook occurred when he was vocally critical of the central bank for not reducing interest rates more vigorously. He also threatened to remove Jerome Powell, the then-chairman of the Fed, whose term expired in May, although Powell remains on the board.
In June, the Supreme Court decided by a 5 to 4 vote that the Federal Reserve holds a unique status within the U.S. government, allowing presidents to remove Fed governors only for cause. The lower courts will determine if the allegations against Cook meet this standard.
