Cook Fires Back at Trump Over Mortgage Fraud Allegations
Federal Reserve Governor Lisa Cook has fired back at renewed threats from the White House to remove her from the central bank's governing board. In a letter sent on August 26, 2026, Cook's attorneys argued that there is no legal basis for President Trump to fire her due to allegations of mortgage fraud. The Trump administration first sought to remove Cook in 2025 over claims she had committed mortgage fraud by declaring two homes as 'primary residences' in mortgage applications.
Cook has denied the charges, stating that any errors were unintentional and did not rise to a level justifying her termination. Officials in the Trump administration have accused Cook of trying to deceive lenders with lower mortgage rates or down payments for second homes.
The Supreme Court previously ruled that Cook could remain in her position while the case is litigated, but also said that Trump could try to fire her again if he provided proper notice and a chance to contest it. If Trump succeeds in removing Cook, he would gain a majority on the Fed's board with his appointees.