The White House has told Federal Reserve Governor Lisa Cook it is considering firing her, reviving unproven mortgage-fraud allegations the Supreme Court already let her fight in court. The renewed push gives Cook a three-week deadline to respond, even as her lawyer calls the claims baseless.
President Donald Trump is moving again to remove Lisa Cook from the Federal Reserve Board. The White House wrote to Cook this week saying it is considering firing her, reviving an effort the Supreme Court froze in June. According to ABC News, the letter demanded she respond to the unproven mortgage-fraud allegations within three weeks.
White House revives mortgage fraud claim
Presidential aide Dan Scavino detailed the accusation in a letter dated Wednesday. According to CNBC: "sufficient reason to believe that you made false statements on one or more mortgage agreements". The unproven claim mirrors the one Trump first raised last August, after housing director Bill Pulte presented documents appearing to show Cook had claimed primary residence status on two properties.
Cook's attorney, Abbe Lowell, rejected the new push. He called the allegations baseless and said there is no valid cause for removing Cook from her position, adding that Cook would again challenge the attempt.
Supreme Court fight left the door open
A federal court blocked Trump from firing Cook while her original lawsuit was pending, and the Supreme Court upheld that decision in a 5-4 ruling in late June. But Chief Justice John Roberts noted the ruling did not stop Trump from trying again to remove Cook over the unproven mortgage-fraud allegations.
Economists and investors said the case is further evidence of White House efforts to undermine the Fed's independence and push it toward lower interest rates. Cook, the first Black woman to serve as a Fed governor, has said the allegations are a pretext to remove her over policy disagreements.
Sources: CNBC, Financial Times, Investing.com
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