Cook Defends Against White House's Renewed Threats to Oust Her from Fed Board

Federal Reserve Governor Lisa Cook has pushed back against renewed threats from the White House to fire her over allegations of mortgage fraud. The Trump administration claims Cook inaccurately listed two homes as 'primary residences' in mortgage applications, which could have led to lower interest rates or down payments. However, Cook maintains that any errors were unintentional and did not rise to a level justifying her removal.

Cook's attorneys argue that the White House has no legal basis for removing her from the central bank's governing board, citing a Supreme Court ruling last year that allowed Cook to remain in her position while a case against her was litigated. The court also stated that Trump could try to fire Cook again if he provided proper notice and gave her an opportunity to contest it.

The White House aide had given Cook until Wednesday to respond, but she denied the allegations and referred one of the two homes as a 'vacation home' in some documents. This move was seen as an attempt by Trump to exert pressure on the Federal Reserve to adjust its benchmark interest rate to his liking.