August 7, 2026

Trump Targets Fed Governor Cook Over Fraud Allegations

WASHINGTON, DC - MARCH 19: Federal Reserve Board Governor Lisa Cook participates in a board meeting at the Federal Reserve on March 19, 2026 in Washington, DC. The board met to meet to discuss a proposal to loosen capital requirements for large and regional banks, scaling back stricter regulations. (Photo by Kevin Dietsch/Getty Images)

President Trump is again attempting to remove Federal Reserve Governor Lisa Cook from the central bank’s governing board due to allegations of mortgage fraud. These claims remain unverified. Previously, the Supreme Court blocked a similar attempt to oust Cook.

Recently, Deputy White House Chief of Staff Daniel Scavino sent Cook a letter demanding an explanation for alleged false statements on mortgage applications. These accusations were initiated by William Pulte, an ally of Trump and overseer of 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, wrote Scavino.

Cook has consistently denied any misconduct. Her lawyer, Abbe Lowell, stated the allegations are baseless, and the attempt to remove her reflects interference with the Federal Reserve’s independence.

“There is no valid cause for removing Governor Cook. As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed.” said Lowell.

Trump’s latest move was initially reported by ABC News. The previous attempt to dismiss Cook arose when Trump criticized the Federal Reserve for its interest rate policy. He also aimed to dismiss then Fed Chairman Jerome Powell, who remains on the board after his term ended in May.

In June, the Supreme Court ruled 5 to 4 that the Federal Reserve has a unique position in government, permitting the president to remove governors only for valid cause. It will be up to lower courts to determine if the allegations against Cook meet this standard.

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