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Trump seeks to remove Fed Gov. Lisa Cook over mortgage fraud claims
The renewed effort follows a Supreme Court ruling that requires notice and an opportunity to respond before any Fed governor can be removed for cause.
President Donald Trump is again pursuing the removal of Federal Reserve Governor Lisa Cook, according to HousingWire. The White House move gives Cook three weeks to respond to mortgage fraud related allegations and could lead to new litigation over the “for cause” removal standard and Fed independence.
HousingWire reports that the letter, reportedly signed by deputy chief of staff Dan Scavino, accuses Cook of “gross negligence” tied to alleged mortgage fraud. It argues her conduct undermines her trustworthiness even if the conduct does not amount to a crime.
The effort comes after a late-June Supreme Court decision that limited Trump’s ability to summarily fire Fed members but left open removal for cause. The court’s 5-4 ruling said Cook was entitled to notice and an opportunity to respond, reflecting Congress’s design of the Fed as structurally independent.
Cook, confirmed to the Fed in a 50-50 Senate vote with then-Vice President Kamala Harris casting the tie break, has denied wrongdoing and has not been charged with a crime. HousingWire says the allegations stem from referrals by Bill Pulte, director of the Federal Housing Finance Agency, and that Cook’s legal team calls the claims baseless and disputes the move as political interference in monetary policy.