Trump Revives Bid to Fire Fed Governor Over Mortgage Fraud Allegations
President Donald Trump is moving forward with his bid to remove Federal Reserve Governor Lisa Cook over mortgage fraud allegations. A letter from the White House, reportedly signed by Deputy Chief of Staff Dan Scavino, accuses Cook of 'gross negligence' and demands she respond to the allegations within three weeks.
The move comes after a Supreme Court ruling in June that limited Trump's ability to summarily fire Fed members but left open the door for removal 'for cause.' The court emphasized Congress's design of the Fed as structurally independent from the White House.
Cook, who was confirmed to the Fed in a 50-50 Senate vote, has denied any wrongdoing and has not been charged with a crime. The allegations stem from referrals made by Bill Pulte, director of the Federal Housing Finance Agency (FHFA), which alleged that Cook falsified bank documents to obtain favorable mortgage terms.
Cook's legal team maintains that the allegations remain 'baseless' and that Trump's efforts amount to political interference with rate-setting decisions. They plan to challenge the latest attempt to remove Cook, citing Supreme Court precedent that there is no valid cause for her removal.