Trump moves to oust Fed Governor Cook over mortgage fraud
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- Trump administration sent Federal Reserve Governor Lisa Cook a letter notifying her that the president is considering her removal over mortgage fraud allegations, giving her 21 days to respond by August 26.
- The Supreme Court earlier this year blocked Trump's first attempt to remove Cook, ruling she was not given notice or a chance to respond; the new letter explicitly cites that opinion as the basis for now providing notice.
- The letter, dated Wednesday and signed by longtime Trump aide Dan Scavino, says Cook has known about the allegations since at least August 25, 2025, but has never provided an explanation in over 10 months.
- Cook's lawyers Abbe Lowell and Norm Eisen called the allegations "as baseless now as they were a year ago" and pledged to challenge "this latest pretext" to "preserve her position and the historic role of the Fed."
- The White House argues in the letter that the alleged conduct constitutes "cause" for removal and "undermines public confidence" in the Federal Reserve — a framing Cook's legal team rejects as interference with Fed independence.
Why it matters: This is Trump's second attempt to fire a sitting Fed governor — an action no president has previously taken — and it directly tests whether the Supreme Court's earlier procedural ruling offers Cook substantive protection from removal. With a response deadline of August 26, the legal fight over who controls the Fed enters a new phase that could redefine presidential power over monetary policy.
