Trump Continues Efforts to Remove Fed Governor Lisa Cook

President Trump has expressed, once again, his intention to remove Federal Reserve Governor Lisa Cook from the central bank’s board. The reason is unproven allegations of mortgage fraud. Earlier attempts to dismiss Cook were halted by the Supreme Court.

Recently, Deputy White House Chief of Staff Daniel Scavino sent a letter to Cook. The letter demanded an explanation for accusations that she falsified information on mortgage applications. William Pulte, a Trump ally, raised these allegations. Pulte oversees Fannie Mae and Freddie Mac.

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,

Scavino mentioned in his letter.

Cook has denied wrongdoing. Her attorney, Abbe Lowell, stated that the allegations remain as unfounded as they were last year. Lowell emphasized that there is no valid reason for Cook’s dismissal. Any attempt to remove her would be opposed to maintain the Federal Reserve’s autonomy.

The effort to discharge Cook was first reported by ABC News. Trump’s previous attempt occurred when he criticized the Fed for not reducing interest rates rapidly. He also threatened to remove Jerome Powell, the former Fed chairman. Powell still serves on the board after his chair term expired in May.

In June, the Supreme Court decided in a close 5 to 4 ruling that Fed governors hold a unique role in the government. It stated that a president can only remove them for justified reasons. Lower courts will now determine if the claims against Cook meet this criterion.