The White House is making a second attempt to fire Federal Reserve Governor Lisa Cook, an appointee of former President Joe Biden, re-igniting a legal confrontation over the limits of presidential authority on the central bank’s board. The move follows a narrow Supreme Court decision that allowed Cook to retain her seat but did not bar the president from initiating a new removal process.
Formal Notice Issued
A letter from White House aide Dan Scavino, obtained by The Associated Press, informs Cook that President Donald Trump is “considering removing you from your position.” The notification sets an August 26 deadline for Cook to contest the action, a procedural step the Supreme Court highlighted was necessary for due process. This administrative maneuver directly challenges the traditional independence of the Federal Reserve, a principle designed to shield monetary policy from political pressure.
The attempt to fire Cook is rooted in a criminal referral made last August by Bill Pulte, the director of the Federal Housing Finance Agency, that accused her of committing mortgage fraud.
The core of the allegation concerns property declarations. Pulte’s referral claims Cook improperly designated two different homes as a “primary residence” on mortgage applications to secure lower rates—one in Ann Arbor, Michigan, and a condominium in Atlanta. American workers, whose purchasing power is eroded when monetary policy is politicized, are the ultimate stakeholders in this dispute over governance at the nation's central bank.
Governor Denies Allegations
Cook has forcefully denied any wrongdoing, with her attorney, Abbe Lowell, characterizing the allegations as a “manufactured pretext” for removing a governor who refused to bow to political pressure on interest rate decisions. Lowell stated the documentation was an “isolated notation” with no intent to defraud, noting that a prior mortgage application for the Atlanta property correctly identified it as a vacation home.
“These allegations are as baseless now as they were a year ago when President Trump tried to remove Governor Cook and interfere with the independence of the Federal Reserve,” Lowell said. The ongoing legal battle now shifts back to the courts, where the administration is appealing a lower-court ruling in Cook’s favor, ensuring this challenge to the structure of the Fed will persist. The outcome will directly impact the ability of any administration to reshape financial oversight based on criminal referrals from allied agency heads.