President Donald Trump is contemplating another attempt to dismiss Federal Reserve Governor Lisa Cook due to allegations of mortgage fraud, according to FOX Business. There’s an ongoing legal discussion about the president’s authority to remove officials from independent central banks.
The White House has requested that Cook respond within the next three weeks to claims made against her last year. In a letter from White House Personnel Director Dan Scavino, Trump indicates that he might proceed with the firing. This comes in light of previous legal challenges following Trump’s initial announcement to terminate her in August 2025.
The communication relayed to Cook stated, “I have informed you that the President is considering removing you from your membership on the Federal Reserve Board.” The letter alleges “reasonable cause” to believe she made false statements pertaining to mortgage agreements and requests a written response detailing these statements and supporting evidence within 21 days.
Trump initially attempted to remove Cook last summer, but courts intervened as a legal challenge was pending. Earlier this summer, the Supreme Court ruled 5-4 in favor of allowing her to stay in office while the lawsuit regarding her removal proceeds.
Chief Justice John Roberts, in the majority opinion, pointed out that the court cannot simply accept the administration’s argument that it could remove Federal Reserve Board members without due process. He emphasized that whether Trump can remove Cook will depend on the facts surrounding her case, which have yet to be fully examined under relevant legal standards.
Cook responded after the ruling, arguing that the charges against her were unfounded, suggesting the president was making “trumped-up excuses” to remove her for refusing to let politics influence her monetary policy decisions. She noted that the ruling reinforces the Fed’s independence, an essential principle for sound economic management.
Allegations of mortgage fraud against Cook first surfaced after Trump’s initial dismissal announcement, when Federal Housing Finance Agency Director Bill Pruitt filed a criminal referral with the Justice Department. Pruitt had previously urged former Fed Chairman Jerome Powell to lower interest rates and had called for Powell’s resignation.
Powell remained in his position despite facing a criminal investigation over his efforts to reform the Fed, which eventually ceased when Republican senators promised to delay confirmation of a replacement during the inquiry. Subsequently, the Senate confirmed Kevin Warsh as Fed chairman in May.
Scavino’s letter to Cook reminded her that the Supreme Court recently affirmed her right to notice of any allegations and an opportunity to respond before any termination occurs. The letter described this as her chance to address the claims made against her.
This story is still developing; please stay tuned for further updates.
