Trump's Bid to Oust Fed Governor Cook Falls Flat Over Lack of Legal Grounds

Federal Reserve governor Lisa Cook has shot down President Trump's attempt to remove her from the US central bank's governing board, citing lack of legal grounds. In a letter sent on August 27, 2026, Cook's attorneys Abbe Lowell and Norman Eisen argued that an inadvertent error in mortgage paperwork is not fraud, as Trump and some members of his cabinet have reportedly done.

Cook was first targeted by the Trump administration last year over allegations she committed mortgage fraud. The US Supreme Court ruled that Cook could remain in her position while the case is litigated, but also allowed Trump to try removing her again if he gave proper notice and an opportunity to contest it.

If Trump succeeds in removing Cook, he would gain the power to appoint a replacement, tipping the balance of the Fed's board in his favor. The dispute centers on Cook's mortgage paperwork, her denial of fraud, and Trump's renewed attempt to remove her from the Federal Reserve board.