Trump mounts new effort to oust Lisa Cook from Fed board after Supreme Court ruling

White House Renewed Attempt to Remove Fed Governor Lisa Cook Following Supreme Court Guidance

Wertynews.com – The Trump administration has formally notified Lisa Cook that the president may dismiss her from the Federal Reserve Board of Governors, citing mortgage fraud accusations. A letter obtained by CBS News confirms the White House is pursuing this course of action after the Supreme Court intervened last year.

New Notice Provides Cook Opportunity to Respond

According to correspondence dated August 5, White House deputy chief of staff Dan Scavino outlined the specific allegations against Cook and established August 26 as the deadline for her reply. The letter explicitly references the Supreme Court’s June ruling, which had blocked Trump’s initial attempt to remove the governor.

“Pursuant to the Supreme Court’s opinion from June 29, 2026, you are hereby provided notice that the President is considering removing you from your position on the Board of Governors of the Federal Reserve due to there being sufficient reason to believe that you made false statements on one or more mortgage agreements,” he wrote.

Scavino further argued that the accusations could potentially constitute criminal conduct. He emphasized the connection between financial trustworthiness and the responsibilities of a Fed governor, stating that the allegations reflect on Cook’s honesty and competence in her current role.

“There is a distinct nexus between a basic level of trustworthiness and care in financial matters and the duties of a Member of the Board of Governors,” he wrote. “Because the allegations in the Criminal Referral reflect on your honesty, trustworthiness, and competence to perform the duties of the office you currently hold, the President has determined that there is reason to believe they constitute cause to remove you from your position on the Board of Governors of the Federal Reserve.”

Supreme Court Ruling Set Precedent for Procedural Protections

The high court’s 5-4 decision in June prevented Trump from dismissing Cook while her legal challenge continued. The majority found that the president failed to provide adequate procedural safeguards before attempting her removal. Specifically, Cook was entitled to notice and a chance to respond to the accusations prior to being fired.

Chief Justice John Roberts authored the majority opinion, warning that accepting the administration’s position would fundamentally alter the Fed’s statutory protections.

“To accept the government’s arguments that Mr. Trump can fire Cook ‘would in effect transform the Federal Reserve’s for-cause protection into at-will employment — an interpretive leap out of step with the statute Congress enacted and our Nation’s tradition of central banking protected from political interference,’ Chief Justice John Roberts wrote for the five-justice majority.”

Justices Sonia Sotomayor, Elena Kagan, Brett Kavanaugh, and Ketanji Brown Jackson joined Roberts in the decision.

Cook’s Legal Team Vows to Resist

Cook’s attorneys, Abbe Lowell and Norm Eisen, issued a statement rejecting what they characterized as a renewed pretext for removal.

“These allegations are as baseless now as they were a year ago when President Trump tried to remove Governor Cook and interfere with the independence of the Federal Reserve,” they said in a statement. “No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent — there is no valid cause for removing Governor Cook.”

Origins of the Mortgage Fraud Allegations

The accusations originated from Bill Pulte, a senior housing official within the Trump administration, who submitted a criminal referral to the Justice Department approximately one year ago. Pulte alleged that Cook misrepresented information on mortgage documents concerning two properties—one located in Michigan and another in Georgia—prior to her nomination to the Fed Board by President Joe Biden in 2021.

Cook has consistently denied any wrongdoing and has never faced criminal charges related to these claims. She initially challenged her attempted dismissal in federal court, successfully blocking the removal in both district court and the D.C. federal appeals court. The Supreme Court subsequently permitted her to remain on the board while her lawsuit proceeds through the judicial system.