Trump Renews Push to Remove Fed's Lisa Cook After Supreme Court Setback

The White House has formally notified Federal Reserve Governor Lisa Cook that President Donald Trump is considering removing her from office over allegations of mortgage fraud, according to a letter dated August 5. The move comes two months after the US Supreme Court ruled that the President lacked the authority to dismiss her without following proper procedure.

The letter, signed by Deputy Chief of Staff Dan Scavino, gives Cook 21 days to respond to the allegations, which she has consistently denied. The White House asserts that her alleged conduct was “grossly negligent” and demonstrates that she is “unfit for the office.”

Cook, the first Black woman to serve on the Federal Reserve Board, has dismissed the accusations as a “manufactured pretext” for political interference. In a statement following the Supreme Court ruling in June, she said the attempt to remove her was tied to her refusal to bow to political pressure and her focus on setting interest rates in the best interests of the American people.

The Supreme Court, in a unanimous decision, found that President Trump had overstepped his authority by attempting to fire Cook without affording her the procedural protections guaranteed by law. The court explicitly stated that it was ruling on narrow procedural grounds and did not address the underlying fraud allegations.

This latest effort marks the first time in the Federal Reserve's 111-year history that a president has sought to remove a governor from office. The central bank is designed to operate independently from political influence, with governors appointed by the president and confirmed by the Senate. The Supreme Court's ruling underscored the importance of that independence.

President Trump reacted angrily to the June decision, posting on social media that he would take “appropriate action immediately.” The new letter is widely seen as an attempt to revive the removal process while complying with the court's requirement to provide Cook with a chance to respond.

Democratic Senator Elizabeth Warren condemned the renewed effort, calling it an illegal attempt to take over America's central bank. She stated that Democrats would “fight back” to ensure the President's efforts fail.

The Federal Reserve's independence is considered crucial for maintaining stable monetary policy and economic credibility. Analysts are closely watching the situation as it tests the boundaries of executive power over independent agencies.

Cook, who has served as a governor since 2022, remains in her position while the process unfolds. Her response is due by August 26. The White House has not indicated what steps it will take after that date.