Trump Targets Fed Governor Lisa Cook Over Mortgage Allegations Again

Federal Reserve governor Lisa Cook has fired back at President Trump's renewed threat to remove her from the central bank's governing board. In a letter responding to White House demands, Cook's attorneys argued that there is no legal basis for Trump to fire her.

Cook was first targeted by Trump last year over allegations of mortgage fraud, which she denies. The Supreme Court ruled at the time that Cook could remain in her position while the case was litigated.

Trump's White House aide had given Cook until Wednesday to respond to the renewed threat, but Cook and her attorneys maintained that any errors on her part were unintentional and did not rise to a level justifying her firing.

The outcome of this dispute is significant because Trump has long attacked the Fed for not cutting its benchmark interest rate quickly enough. If he is able to remove Cook, he could name a replacement and his appointees would gain a majority on the Fed's board.