Cook vs Trump: Fed Governor Fights Off Second Attempted Removal
Federal Reserve Governor Lisa Cook is pushing back against a second attempt by the Trump administration to remove her from her position, citing lack of legal basis for the move. The dispute centers around accusations of mortgage fraud, which Cook's lawyers argue are unsubstantiated and mirror errors committed by others, including members of the current administration.
The White House sent Cook a message on August 5 threatening potential dismissal due to alleged false statements on mortgage agreements, giving her three weeks to respond. However, under US law, Federal Reserve governors can only be removed 'for cause,' not for political reasons.
This latest effort follows a similar attempt last year, which led to litigation that culminated in a Supreme Court ruling in June. The court blocked Trump from firing Federal Reserve governors at will, reinforcing the protections enshrined in the Federal Reserve Act of 1913 designed to shield the bank from political interference.