WASHINGTON (AP) — The Trump administration is advancing its efforts to remove Federal Reserve governor Lisa Cook, following a June Supreme Court ruling that allowed her to retain her position while contesting her potential dismissal. The case revolves around allegations of mortgage fraud made against her, which Cook has firmly denied.
The Supreme Court ruled in a narrow 5-4 decision that Cook, nominated to the Federal Reserve Board of Governors by President Joe Biden, could keep her role at least during the duration of her lawsuit against the administration’s efforts to terminate her. The Trump administration is currently appealing a lower court's decision that favored Cook.
Chief Justice John Roberts noted in a footnote that President Donald Trump is not prohibited from attempting to fire Cook again, provided she is given adequate notice and an opportunity to contest the decision. Following this ruling, Trump indicated his intent to move forward, pledging to “take appropriate action immediately.”
In a recent letter obtained by the Associated Press, White House aide Dan Scavino informed Cook that Trump is “considering removing you from your position.” The correspondence also referenced the Supreme Court’s stipulation for proper notification, giving Cook until August 26 to respond to the potential removal.
The backdrop to this effort to dismiss Cook stems from a criminal referral made last August by Bill Pulte, the director of the Federal Housing Finance Agency. Pulte accused Cook of mortgage fraud for designating two different residences — one in Ann Arbor, Michigan, and another in Atlanta, Georgia — as her “primary residence.” This designation purportedly allowed her to receive lower mortgage rates and reduced down payment requirements that are typically reserved for primary homes as opposed to secondary or vacation properties.
Cook has vocally defended herself against these claims, asserting that the president's attempt to terminate her is based on a “manufactured pretext” due to her refusal to yield to political pressures, emphasizing that her decisions regarding interest rates have always been guided by what would best serve American citizens.
Her attorney, Abbe Lowell, elaborated in a November letter that Cook has predominantly lived in her Ann Arbor property since acquiring it in 2005. Thus, it was justifiable for her to classify it as her “primary residence” during a June 2021 mortgage refinance application. Afterward, in July 2021, she purchased a condominium in Atlanta, which she also referenced as her “primary residence” in subsequent documentation. Lowell suggested that this was merely an “isolated notation” and did not exhibit any intent to deceive. He further indicated that an earlier mortgage application had described the Atlanta condo as a “vacation home,” and Cook had also identified it as a secondary residence in federal filings during her confirmation process as a Fed governor.
The latest correspondence from the White House reiterates the year-old allegations against Cook. In response, Lowell remarked, “These allegations are as baseless now as they were a year ago when President Trump attempted to remove Governor Cook and interfere with the independence of the Federal Reserve.” He added that regardless of Trump’s forthcoming actions, the evidence and Supreme Court precedents clearly indicate a lack of valid grounds for Cook’s removal. He emphasized their commitment to challenge this latest attempt and to uphold both her position and the historical significance of the Federal Reserve.
