President Donald Trump has renewed his campaign to remove Lisa Cook from her position as a Federal Reserve governor, marking an unprecedented effort in the institution’s 113-year history. The White House sent Cook a formal notice on August 5th, informing her that the president is considering her removal and demanding a response within three weeks to allegations of mortgage fraud.
The accusations center on Cook allegedly listing two properties—one in Georgia and another in Michigan—as her primary residence to obtain favorable mortgage rates. However, legal experts have found no conclusive evidence that Cook intentionally deceived lenders, making a fraud prosecution unlikely. Cook’s legal team has stated there is no valid cause for her removal and vows to challenge the administration’s actions.
Trump’s push to oust Cook is part of a broader conflict with the Federal Reserve over interest rates. The president has pressured the central bank to rapidly reduce rates despite elevated inflation levels, clashing with Cook and other governors who maintain that higher rates remain necessary. Cook recently stated that inflation is “too high” and that she is prepared to support rate increases, directly opposing Trump’s economic agenda.
Federal law permits presidents to remove Federal Reserve governors only “for cause,” a protection designed to insulate the institution from political pressure. A Supreme Court ruling in June blocked Trump’s earlier attempt to fire Cook, though it did allow the president to remove heads of other independent agencies.
Originally reported by Aljazeera →
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