President Trump is reviving his effort to remove Federal Reserve Governor Lisa Cook, with the White House sending her a new letter detailing mortgage fraud allegations. Deputy White House Chief of Staff Dan Scavino informed Cook in a letter dated Wednesday that Trump is “considering” her removal and that there is “sufficient reason to believe that you made false statements on one or more mortgage agreements.” Scavino, who also heads the White House Office of Presidential Personnel, has demanded Cook provide an explanation and evidence within three weeks.
This marks Trump’s latest attempt to remove Cook. The Supreme Court previously blocked his initial firing in June with a 5-4 decision, though the ruling left the door open for the president to try again by providing notice and an opportunity for the governor to respond. Chief Justice John Roberts wrote in the June 29 decision that a final decision could only be made after Cook had the opportunity to address the charges, and that courts could then assess the validity of those charges.
Scavino’s new letter was sent “pursuant to the Supreme Court’s opinion,” according to the report. Cook’s attorney, Abbe Lowell, has vowed to challenge the new effort, stating that the allegations are baseless and that Trump’s actions interfere with the independence of the Federal Reserve. Lowell asserted that, based on the facts and Supreme Court precedent, there is no valid cause for Cook's removal and that her position and the Fed's historic role will be preserved.
Cook has denied any wrongdoing and has not been charged with a crime. She recently indicated a willingness to support an interest rate hike if inflation does not ease, stating, “I am prepared to act by raising rates, if necessary.” This aligns with a growing number of Federal Reserve officials signaling a readiness to tighten monetary policy.
The allegations stem from criminal referrals made by Federal Housing Finance Agency Director Bill Pulte, a Trump ally, who accused Cook of falsifying bank documents to secure favorable mortgage terms before joining the Fed. Trump first demanded Cook resign in August of the previous year and subsequently purported to fire her “for cause,” initiating the first presidential attempt to remove a sitting Federal Reserve governor under the Act’s removal provision. Cook challenged the firing, and initial legal battles in federal courts blocked the removal while litigation proceeded.
The Supreme Court’s June ruling rejected the administration’s argument that a president’s determination of “cause” was beyond meaningful judicial review. However, the court did not establish a categorical rule that alleged misconduct prior to joining the Fed could never justify removal.
This situation is part of a broader pattern of tension between Trump and the Federal Reserve concerning the central bank’s independence and Trump’s calls for easier monetary policy. During his term, Trump frequently criticized former Fed Chair Jerome Powell for resisting demands for lower interest rates. Following Powell's tenure, which concluded in May, Kevin Warsh was sworn in as his successor on May 22. Previous attempts by the administration to investigate Federal Reserve building renovations through grand jury subpoenas were quashed by a federal judge in March, who found the subpoenas’ dominant purpose to be improper political pressure rather than a legitimate investigation.