Trump Administration Pursues Fresh Effort to Remove Federal Reserve Governor Lisa Cook

The Trump White House has resumed its campaign to oust Federal Reserve Governor Lisa Cook, escalating efforts two months after the Supreme Court permitted her to remain in office while legal proceedings continue. The administration is challenging a lower-court decision that favored Cook, who was appointed to the Fed’s Board of Governors by former President Joe Biden.

In a 5-4 ruling this past June, the Supreme Court determined Cook could keep her position throughout the duration of her lawsuit contesting her removal. Chief Justice John Roberts noted in his opinion that nothing prevents Trump from making another removal attempt, provided Cook receives proper notice and an opportunity to respond. Trump subsequently pledged to pursue such action.

A White House communication from aide Dan Scavino this week, obtained by The Associated Press, informed Cook that the president was “considering removing you from your position” while adhering to the Supreme Court’s procedural requirements. The letter set an August 26 deadline for Cook to present her response.

The removal effort stems from a criminal referral submitted last August by Bill Pulte, director of the Federal Housing Finance Agency, who alleged Cook committed mortgage fraud by designating two separate properties—one in Ann Arbor, Michigan, and another in Atlanta—as her primary residence. Primary residences typically qualify borrowers for lower interest rates and reduced down payments compared to investment or vacation properties.

Cook has vigorously contested the accusations, asserting that Trump sought to remove her “on a manufactured pretext because I refused to bow to political pressure and continued to set interest rates based only on what would best serve the American people.” Her attorney, Abbe Lowell, contended in a November filing that Cook has primarily occupied the Ann Arbor home since purchasing it in 2005, making her 2021 mortgage refinance application accurate when listing it as her primary residence.

According to Lowell, Cook bought an Atlanta condominium the following month and labeled it as a primary residence in a July 2021 document, which he characterized as an isolated notation without fraudulent intent. The same lender’s earlier application from May 2021 had identified the Atlanta property as a vacation home, Lowell noted, and Cook similarly classified it as a second residence during her Federal Reserve confirmation proceedings.

Lowell released a statement condemning the latest White House action, characterizing the allegations 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.” He pledged to contest the removal bid and safeguard both Cook’s position and the Fed’s institutional independence.