Trump Administration Moves to Fire Federal Reserve Governor Lisa Cook

The Trump administration is advancing efforts to dismiss Federal Reserve Governor Lisa Cook. This action comes two months after the Supreme Court allowed her to remain in her role amid mortgage fraud allegations, which she denies.

In June, the Supreme Court ruled in a narrow 5-4 decision that Cook, who was nominated by President Joe Biden, could maintain her position while her lawsuit challenging the termination is ongoing. Despite this, the Trump administration is appealing a lower-court decision in Cook’s favor.

Supreme Court Chief Justice John Roberts noted that President Trump could pursue Cook’s removal again, provided he follows due process. Trump stated he intends to act swiftly on this matter.

This week, White House aide Dan Scavino informed Cook that Trump is contemplating her removal, as required by the Supreme Court’s guidelines. She has been given until August 26 to contest this action.

The attempt to dismiss Cook traces back to a criminal referral by Bill Pulte, Director of the Federal Housing Finance Agency. The referral accused her of mortgage fraud, citing dual claims of “primary residence” status on properties in Ann Arbor, Michigan, and Atlanta. This designation can enable favorable mortgage rates and terms.

Cook insists the allegations are unfounded, asserting her removal is politically motivated due to her independent stance on interest rate decisions. Her attorney, Abbe Lowell, clarifies that she primarily resides at the Ann Arbor home, purchased in 2005. While she designated it as her “primary residence” in a refinancing application of June 2021, she later bought a condo in Atlanta, mistakenly labeled as a “primary residence” in July 2021.

Lowell contends this was an isolated incident, not indicative of fraudulent intent. Previous documentation described the Atlanta property as a vacation home.

In response, the White House letter reiterates old allegations. Lowell asserts these claims remain as baseless now as previously.

He emphasized their commitment to contesting this latest effort to protect Cook’s position and maintain Federal Reserve independence.

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Photo Caption: Federal Reserve Governor Lisa Cook speaks at the Stanford Institute of Economic Policy Research. (Photo by Ann Saphir/Reuters)