Trump administration renews effort to fire Federal Reserve Governor Lisa Cook

The Trump administration is proceeding with its attempt to remove Federal Reserve Governor Lisa Cook, two months after the Supreme Court allowed her to remain in her post while she litigates the president's effort to terminate her.

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trying again

In June, the Supreme Court ruled 5-4 that Cook, nominated by President Joe Biden, could stay in her position at least until her lawsuit challenging the firing concludes. Chief Justice John Roberts noted in his opinion that the president could "try again" to fire Cook, provided she receives proper notice and an opportunity to contest the action. Trump had previously indicated he would pursue this path immediately.

This renewed effort comes via a letter obtained by The Associated Press, in which White House aide Dan Scavino informed Cook that Trump was "considering removing you from your position." Citing the Supreme Court's requirement for due process, the letter gives Cook until August 26 to present her challenge.

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take appropriate action immediately.

The administration's attempt to fire Cook stems from a criminal referral made last August by Bill Pulte, director of the Federal Housing Finance Agency. Pulte accused Cook of mortgage fraud for declaring two different homes, one in Ann Arbor, Michigan, and another in Atlanta, as her "primary residence." Homebuyers typically receive more favorable mortgage terms for primary residences compared to second homes.

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considering removing you from your position

Cook has vehemently denied the allegations, asserting that the president's actions are based on a "manufactured pretext" because she refused to yield to political pressure and based interest rate decisions solely on what would best serve the American people. Her lawyer, Abbe Lowell, has argued that Cook has primarily resided in the Ann Arbor property since 2005, making its declaration as her primary residence accurate for a mortgage refinance application in June 2021. While she purchased an Atlanta condominium later that year and also referred to it as her "primary residence" in a July 2021 document, Lowell characterized this as an "isolated notation" without intent to defraud. He noted that an earlier mortgage application for the Atlanta condo in May 2021 had referred to it as a "vacation home," and Cook had also described it as a second home in federal filings during her confirmation process.

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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.