Trump Administration Seeks to Fire Fed Governor Over Mortgage Allegations

The Trump administration is moving forward with its efforts to fire Federal Reserve Governor Lisa Cook. This move comes two months after the Supreme Court allowed her to remain in her position while she fights the president's effort to terminate her over mortgage fraud allegations that she denies.

Cook was nominated to the Fed's Board of Governors by President Joe Biden, but the Trump administration is appealing a lower-court ruling in her favor. The administration cited a criminal referral made last August by Bill Pulte, the director of the Federal Housing Finance Agency, which accused Cook of committing mortgage fraud.

Cook has aggressively defended herself against the allegations, saying she was unfairly targeted for refusing to bow to political pressure and continuing to set interest rates based on what would best serve the American people. Her lawyer argued that she had mostly lived in one of her homes since purchasing it in 2005 and accurately referred to it as her primary residence.

The White House aide Dan Scavino told Cook in a letter this week that President Trump was considering removing her from her position but cited the Supreme Court's requirement of proper notice, giving her until August 26 to challenge it. The attempt to fire Cook is seen as an effort by the president to interfere with the independence of the Federal Reserve.