Trump's Second Attempt to Fire Fed Governor Fails

Federal Reserve Governor Lisa Cook has shot down renewed threats from former President Donald Trump to fire her, citing a lack of legal basis for his actions. The White House had given Cook until Wednesday to respond to allegations that she committed mortgage fraud, which she denies.

Cook's attorneys argued in a statement that 'an inadvertent error is not fraud' and accused Trump of trying to force the Federal Reserve to bend to his will. They pointed out that even if Cook made mistakes on her mortgage applications, they were unintentional and did not justify her firing.

Trump had first sought to fire Cook a year ago over similar allegations, but the Supreme Court ruled at the time that she could remain in her position while the case was litigated. The justices also stated that Trump could try to fire her again if he provided proper notice and gave her a chance to contest it.

The outcome of this latest threat is unclear, but Cook's retention would maintain the balance on the Fed's board. Trump has long criticized the Fed for not cutting its benchmark interest rate quickly enough.