Trump renews effort to fire Federal Reserve governor Lisa Cook

The White House has revived its campaign to remove Lisa Cook, a governor at the U.S. central bank and the first Black woman to hold the position. President Donald Trump's administration sent Cook a letter on Friday threatening her job, according to media reports. The letter, signed by Deputy Chief of Staff Dan Scavino, warned Cook that the President was considering her removal and gave her three weeks to respond to allegations of mortgage fraud.

These allegations, which are described as unproven, carry a potential prison sentence of up to 30 years. The letter stated that Cook's alleged conduct constitutes negligence, raising questions about her trustworthiness as a Federal Reserve governor. Trump first made claims against Cook in August 2025, seeking to oust her from her role. This marks an unprecedented attempt by a president to remove a Federal Reserve governor since the central bank's founding in 1913.

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You are hereby provided notice that the President is considering removing you from your position

The Federal Reserve has historically operated independently of political pressure, with governors protected by law from removal except "for cause." This insulation is designed to prevent economic decisions from being influenced by political agendas. However, Trump has aggressively pushed for lower interest rates to combat inflation and has sought to replace appointees of his Democratic predecessor, Joe Biden, who nominated Cook in 2022.

Trump's claims against Cook center on her listing two homes as primary residences in Georgia and Michigan, which could have qualified her for favorable mortgage rates. However, evidence of deception by Cook to lenders remains inconclusive, making a successful fraud prosecution unlikely. A U.S. Supreme Court ruling in June blocked Trump's attempt to fire her, though it did not prevent him from removing heads of other independent agencies. Notably, on August 5, the same day the letter was dated, Cook spoke at an economic luncheon in Alaska, stating that inflation is "too high" and she is "prepared to act" by raising interest rates, aligning with the Federal Reserve's current stance.

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inflation is “too high” and indicating that she is “prepared to act” by raising interest rates