Trump Threatens Fed Governor Cook’s Removal Amid Allegations

President Trump has issued another warning to Federal Reserve Governor Lisa Cook, suggesting her removal from the central bank’s governing board. This move stems from unverified allegations of mortgage fraud. Previously, the Supreme Court obstructed an earlier attempt by Trump to dismiss Cook.

The recent warning involves a letter from Deputy White House Chief of Staff Daniel Scavino. In the letter, Scavino demands Cook’s response to accusations of making false statements on mortgage applications. These allegations were initially put forward by Trump ally William Pulte, who is involved with mortgage entities Fannie Mae and Freddie Mac.

“Even if your conduct does not rise to the level of felony offense, it appears to demonstrate a level of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator,” wrote Scavino.

Governor Cook has strongly refuted these claims. Her attorney, Abbe Lowell, stated, “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 emphasized there is no valid reason for Cook’s removal, and they plan to challenge this latest attempt to preserve her position at the Fed.

ABC News initially reported the renewed effort to discharge Cook. Trump’s previous actions against Cook occurred during a period when he criticized the central bank for not reducing interest rates more assertively. He also threatened then-Fed Chairman Jerome Powell’s position. Powell’s term ended in May, but he remains on the board.

In June, the Supreme Court decided in a 5 to 4 vote that the Federal Reserve holds a distinct status within the U.S. government. This decision indicates that presidents can only remove Fed governors for valid cause. Lower courts will determine whether allegations against Cook meet the necessary standard for removal.