Trump Seeks to Oust Fed Governor Over Mortgage Fraud Allegations
US President Donald Trump is once again targeting Federal Reserve Governor Lisa Cook, this time over mortgage fraud allegations. A White House letter dated August 5 and signed by Deputy Chief of Staff Dan Scavino notified Cook that she may be removed from her position due to 'grossly negligent' conduct and 'unfitness for the office.' The letter demands a response within 21 days.
Cook has consistently denied the allegations, stating that they were an attempt to remove her due to her refusal to bow to political pressure. This move marks Trump's latest assault on the Federal Reserve's independence, with him also launching a criminal probe against former chairman Jerome Powell and attempting to fire Cook.
The Supreme Court previously ruled in June that Trump did not have the power to dismiss Fed governors 'for any reason or no reason.' The court emphasized the importance of the Fed's independence and noted that Trump failed to provide Cook with procedural protections as required by statute.