Trump reportedly renews bid to oust Fed Gov. Lisa Cook

President Donald Trump is reportedly moving forward with a renewed attempt to remove Federal Reserve Gov. Lisa Cook over mortgage fraud allegations. 

The White House this week sent Cook a letter stating the president is “considering” removing her and demanding she respond to the allegations within three weeks, ABC News reported Friday

The letter, reportedly signed by deputy chief of staff Dan Scavino, accuses Cook of “gross negligence” tied to alleged mortgage fraud and argues her conduct undermines her trustworthiness as a Fed governor, even if the conduct does not amount to a crime.

The move comes on the heels of a Supreme Court ruling in late June that limited Trump’s ability to summarily fire members of the Fed but left open the door for removal “for cause.” In a 5-4 decision, Chief Justice John Roberts held that Cook was entitled to notice and an opportunity to respond to the charges before any dismissal, emphasizing Congress’s design of the Fed as structurally independent from the White House.

Trump responded by signaling on social media that he would “take appropriate action immediately” to ensure “someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America.” 

The new White House letter appears to be the formal start of that process, structured to comply with the court’s procedural requirements.

Cook, who was confirmed to the Fed in a 50-50 Senate vote that required then-Vice President Kamala Harris to break the tie, has denied any wrongdoing and has not been charged with a crime. 

The allegations stem from referrals made by Bill Pulte, director of the Federal Housing Finance Agency (FHFA). Pulte alleged that Cook falsified bank documents to obtain favorable mortgage terms, prompting the Department of Justice to open an investigation last year.

Cook’s legal team maintains that the allegations remain “baseless” and that Trump’s efforts amount to political interference with rate-setting decisions.

“No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent — there is no valid cause for removing Governor Cook,” her attorney Abbe Lowell said in a statement to ABC. “As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed.”

Cook has framed the case as a pretext linked to her resistance to political pressure on monetary policy.

“This was never about mortgage documents signed years before I became a Federal Reserve governor,” she said after the Supreme Court’s ruling. “It was an attempt to remove me on a manufactured pretext because I refused to bow to political pressure and continued to set interest rates based only on what would best serve the American people.”

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.