Trump Administration’s Efforts to Remove Federal Reserve Governor Lisa Cook Continue

The Trump administration is persisting in its effort to dismiss Federal Reserve governor Lisa Cook. This comes two months following a Supreme Court decision allowing Cook to stay in her role while contesting the president’s decision to remove her over mortgage fraud allegations she denies.

In June, the Supreme Court ruled 5-4 in favor of Cook remaining on the Fed’s Board for the duration of her lawsuit challenging her dismissal. Chief Justice John Roberts indicated President Trump could attempt again to dismiss Cook, provided proper notice is given and she is allowed to contest the decision. Trump subsequently pledged to proceed with the attempt.

Recently obtained correspondence from White House aide Dan Scavino to Cook suggested her potential removal was under consideration, with compliance to the Supreme Court’s requirement for notice, allowing until August 26 to challenge the decision.

The basis for Cook’s removal originates from an August referral by Bill Pulte, director of the Federal Housing Finance Agency. The referral accused Cook of mortgage fraud for declaring homes in Ann Arbor, Michigan, and Atlanta as “primary residence.” This declaration potentially entitles homebuyers to lower mortgage rates or smaller down payments on primary homes compared to secondary residences.

Cook has consistently defended herself, claiming the president aims to remove her without cause, as she contends that her approach to setting interest rates was independent and aimed at serving the American public. Her attorney, Abbe Lowell, stated in November that since 2005, Cook primarily resided in the Ann Arbor house. Therefore, listing it as her “primary residence” for mortgage refinancing in June 2021 was accurate.

Cook purchased an Atlanta condo in July 2021 and also listed it as “primary residence” in a statement. Lowell argued this was an isolated mention without fraudulent intent, noting her initial May 2021 application labeled the condo as a “vacation home.” During her Fed governor confirmation, Cook identified the Atlanta condo as a secondary home in federal documents.

The latest White House letter reiterates year-old allegations. Lowell dismissed them as groundless both now and during last year’s removal attempt, asserting there remains no valid reason for Cook’s dismissal. The intention is to contest anew and safeguard Cook’s position, upholding the Federal Reserve’s independence.