Trump administration renews bid to fire Fed Governor Lisa Cook

Trump administration renews bid to fire Fed Governor Lisa Cook

The White House has restarted its unprecedented effort to remove Federal Reserve Governor Lisa Cook, weeks after the Supreme Court blocked its first attempt. Deputy chief of staff Dan Scavino sent Cook a letter, dated August 5, notifying her that President Trump is considering her removal and giving her until August 26 to respond to mortgage-fraud allegations she has denied and for which she has not been charged. Axios

The move is explicitly designed to satisfy the Court's earlier objections. The Supreme Court had ruled that Trump's original attempt to oust Cook failed because she wasn't given proper notice or a chance to respond; the new letter states it is being issued "pursuant to the Supreme Court's opinion" in an effort to meet those procedural requirements. The letter argues the alleged conduct constitutes "cause" for removal and "undermines public confidence" in the Fed. AxiosAxios

Cook has pushed back forcefully. She has said Trump attempted to oust her "on a manufactured pretext because I refused to bow to political pressure and continued to set interest rates based only on what would best serve the American people." Her attorney, Abbe Lowell, has argued Cook mostly lived at the Ann Arbor property in question since purchasing it in 2005, undercutting fraud claims tied to how she classified her residences on mortgage paperwork. Cook's legal team said this week there is "no valid cause" for her removal. Georgia Public Broadcasting + 2

The stakes are significant for the central bank's independence. The Supreme Court's June ruling, decided 5-4, allowed Cook — nominated by President Biden — to remain in her post while her lawsuit challenging the firing continues. Cook's current term runs until January 2038, and she was the first Black woman to serve as a Fed governor. The renewed push comes as Trump has separately pressed for lower interest rates and pursued other changes to the Fed's board. Washington TimesFox News