Trump renews push to oust Federal Reserve governor Lisa Cook

Photo: Federalreserve / Wikimedia Commons (Public domain)

The White House has revived its effort to remove Federal Reserve Gov. Lisa Cook, sending her a letter that threatens her position at the nation's central bank over unproven allegations of mortgage fraud.

The letter, dated Aug. 5 and signed by White House Deputy Chief of Staff Dan Scavino, gave Cook three weeks to respond. It warned that the alleged conduct is punishable by up to 30 years in prison and called into question her trustworthiness as a Fed governor.

"You are hereby provided notice that the President is considering removing you from your position," the letter read.

No president since the Federal Reserve's founding in 1913 has sought to oust a sitting governor. Cook, the first Black woman to serve in the role, was nominated in 2022 under President Joe Biden.

Allegations with no conclusive evidence

Trump first raised the claims against Cook in August 2025. They center on the idea that she listed two homes, one in Georgia and one in Michigan, as her primary residence, which could have made her eligible for favorable mortgage rates.

But there is no conclusive evidence that Cook sought to deceive lenders, making a successful fraud prosecution unlikely.

Cook's legal team pushed back firmly. Lawyer Abbe D. Lowell said in a statement that "there is no valid cause" for removing her.

"As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed."

Supreme Court already blocked a prior attempt

In June, the U.S. Supreme Court ruled to block Trump's earlier attempt to fire Cook, though the decision did clear the way for the president to remove the heads of other independent agencies.

Under federal law, the central bank is designed to operate independently from political pressure. Fed governors can only be removed by the president "for cause," and a full term runs 14 years.

Rate cuts and a long-running feud with the Fed

The renewed push against Cook comes as Trump continues to pressure the Federal Reserve to slash interest rates. The Fed has held rates steady for five consecutive meetings to combat elevated inflation.

"We should have the lowest interest rate in the world," Trump said after the most recent decision to hold rates.

On the same day the letter was sent, Cook spoke at an economic luncheon in Alaska, saying inflation is "too high" and indicating she is "prepared to act" by raising rates, a position shared by other Fed officials.

Trump has long sparred with the central bank over monetary policy, repeatedly threatening to fire former Fed Chair Jerome Powell for refusing to cut rates. Kevin Warsh, a Trump appointee who took over as chair in May, has also not delivered the rate reductions the president wants.

Cook's lawyers have signaled they will fight the latest effort in court.

The post Trump renews push to oust Federal Reserve governor Lisa Cook appeared first on Northeast Times.