- Trump renews push to remove Fed Governor Lisa Cook.
- White House demands Cook respond to mortgage fraud allegations.
- Cook’s legal team rejects claims, citing Federal Reserve independence.
- Move highlights Trump’s push for lower interest rates.
US President Donald Trump has renewed his attempt to remove Federal Reserve Governor Lisa Cook, reopening a high-stakes confrontation over the independence of the country’s central bank. The latest move comes only months after the US Supreme Court intervened to prevent Trump’s previous effort to oust Cook. According to a letter reviewed by Reuters, the White House has now given Cook three weeks to respond to allegations linked to mortgage applications before Trump decides whether to remove her from the Federal Reserve.
White House Gives Lisa Cook Three Weeks To Respond
A letter delivered to Cook this week said Trump was “considering” removing her from the Federal Reserve Board. The document asked her to respond within 21 days to allegations of mortgage fraud that her legal team has rejected. The allegations centre on properties Cook listed as primary residences in Georgia and Michigan. Such declarations can potentially allow borrowers to access more favourable mortgage conditions. However, the accusations have not so far produced clear evidence that Cook deliberately misled lenders.
The letter, signed by White House Deputy Chief of Staff Dan Scavino, argued that the alleged conduct could amount to serious negligence. It also claimed that the accusations could expose Cook to a prison sentence of as much as 30 years. Cook’s lawyer has dismissed the allegations as “baseless.”
The latest development marks the second occasion in the same week that Trump has revived a policy fight after facing resistance from the Supreme Court. The president had earlier issued a fresh order concerning birthright citizenship despite previous judicial intervention on the issue.
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Cook’s Legal Team Rejects Trump’s Case
Cook’s attorney, Abbe D. Lowell, strongly challenged the justification cited by the administration and said the president had no legitimate grounds to remove the Fed governor.
“there is no valid cause” was Lowell’s assessment of the case against Cook. He added: “As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed.”
Neither the Federal Reserve nor the White House offered an immediate comment on the renewed dispute.
The mortgage allegations were first raised by Trump in August 2025, when he attempted to remove Cook from her position. Cook, who made history as the first Black woman to serve as a Federal Reserve governor, has maintained that the allegations are being used as a justification for what is essentially a disagreement over monetary policy.
Under US law, Federal Reserve governors serve lengthy 14-year terms and cannot simply be dismissed at the president’s discretion. Removal requires “cause”, a safeguard intended to give policymakers a degree of independence from political pressure.
No US president has successfully removed a Federal Reserve governor since the central bank was established in 1913.
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Interest Rates At The Centre Of Trump’s Frustration
The renewed dispute involving Cook comes against the backdrop of Trump’s continuing campaign for lower borrowing costs. The president has repeatedly criticised the Federal Reserve over its approach to interest rates and has sought a faster reduction in borrowing costs.
Cook was nominated to the Fed by former President Joe Biden in 2022. Her position has therefore become part of Trump’s broader effort to reshape the central bank and challenge officials appointed during the previous administration.
The timing of the latest letter has also drawn attention. It was dated August 5, the same day Cook spoke at an economic gathering in Alaska and warned that inflation remained “too high”. She also indicated that she was prepared to support an increase in interest rates if economic conditions warranted it.
That position puts Cook at odds with Trump’s preference for significantly lower rates.
Fed Independence Faces Fresh Test
Trump’s latest confrontation with Cook is likely to intensify concerns over political pressure on the Federal Reserve. The central bank’s ability to set monetary policy without direct presidential intervention has traditionally been viewed as an important feature of the US financial system.
The president has previously targeted former Federal Reserve Chair Jerome Powell over interest-rate decisions. Current Chair Kevin Warsh, who assumed the position in May, has also faced pressure to reduce rates, although inflation remains a key consideration for policymakers.
