The Trump administration is continuing its attempt to dismiss Federal Reserve Governor Lisa Cook. This follows the Supreme Court’s recent decision enabling her to remain in her position while challenging her dismissal over disputed mortgage fraud accusations.
In a 5-4 ruling in June, the Supreme Court allowed Cook, appointed by President Joe Biden, to stay in office during her legal fight against the termination attempt. Meanwhile, the Trump administration is appealing a lower court’s decision that favored Cook.
Chief Justice John Roberts noted in his opinion that President Donald Trump can attempt once more to discharge Cook, given she receives due notice and an opportunity to contest the action. Following the ruling, Trump expressed his intention to act swiftly. A letter from White House aide Dan Scavino, acquired by the Associated Press, informed Cook of Trump’s intent and gave her until August 26 to dispute the decision, as per the Supreme Court’s directive.
The effort to dismiss Cook originates from a criminal referral by Bill Pulte, director of the Federal Housing Finance Agency. Last August, Pulte accused Cook of fraudulently declaring two properties—one in Ann Arbor, Michigan, and another in Atlanta—as primary residences. Such declarations could influence mortgage rates and down payments.
Cook has firmly contested the charges, stating the president sought her removal under a manufactured pretext due to her refusal to yield to political pressure. Her attorney, Abbe Lowell, explained in November that Cook accurately described her Ann Arbor home as her primary residence during a June 2021 refinancing application. Lowell noted her later purchase of an Atlanta condo, which was also named as her primary residence in a July 2021 document, was an isolated misstatement without fraudulent intent. A preceding mortgage application labeled it a vacation home. She also identified the condo as a secondary residence during her Fed confirmation process.
The current White House communication revisits past allegations. “These charges remain as unfounded now as they were when President Trump first attempted to remove Governor Cook,” stated Lowell. “Whatever Trump tries next, facts and Supreme Court precedent make it clear – there is no valid reason to remove Governor Cook. We will continue to fight to maintain her position and the Federal Reserve’s independence,” he added.