Trump Threatens to Fire Federal Reserve Governor Lisa Cook Again
Federal Reserve Governor Lisa Cook has responded to renewed threats from the White House to fire her. The Trump administration had first sought to remove Cook last year over allegations of mortgage fraud, which she denies. In a letter on Wednesday, Cook's attorneys stated that there is no legal basis for President Trump to remove her from the central bank's governing board. The Supreme Court had previously ruled that Cook could remain in her position while the case was litigated.
Cook has maintained that any errors in her mortgage applications were unintentional and did not rise to a level that justified her firing. Officials in the Trump administration have accused Cook of declaring two homes as 'primary residences' in mortgage applications, which can sometimes receive lower mortgage rates or down payments than second homes.
The White House had given Cook until Wednesday to respond to allegations made by a White House aide earlier this month. If Trump is able to remove Cook, he could name a replacement and his appointees would gain a majority on the Fed's board.