President Trump is once again pursuing the removal of Federal Reserve Board Governor Lisa Cook, according to a White House announcement this week. Deputy Chief of Staff Dan Scavino sent Cook a letter claiming there is “sufficient reason to believe” she made false statements on mortgage agreements. The allegations mirror those Trump initially raised when attempting to dismiss Cook last year from her position at the central bank.
Cook has consistently denied these charges and previously filed a lawsuit to challenge her dismissal. A federal court initially blocked Trump’s removal effort, and the Supreme Court upheld that decision in a 5-4 ruling last June. However, Chief Justice John Roberts indicated the ruling did not prevent Trump from attempting Cook’s removal again if proper constitutional procedures were followed. Scavino’s letter, sent Wednesday, references the Supreme Court’s decision and requests Cook provide an explanation and supporting evidence within three weeks.
Cook’s legal team dismissed the latest effort as baseless. Attorney Abbe Lowell stated the allegations hold no merit and that his client’s position and the Federal Reserve’s independence will be defended. The mortgage-related allegations originated from Federal Housing Finance Agency Director Bill Pulte, who has been characterized as aligned with Trump’s political interests. The initial removal attempt occurred as Trump sought to pressure the Federal Reserve into reducing interest rates.
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