White House Threatens to Oust Fed Governor Cook Over Mortgage Allegations

For the second time in a year, the White House has threatened to fire Federal Reserve Governor Lisa Cook over allegations of making false statements on mortgage applications. The latest letter, dated August 5, informs Cook that she must respond to the accusations by August 26 or face removal from her position.

The White House claims that Cook improperly wrote on mortgage applications that two different properties were her primary residence in order to qualify for lower interest rates. However, Cook's lawyer, Abbe Lowell, has repeatedly denied these allegations, calling them 'baseless' and stating that there is no valid cause for removing Cook from the Federal Reserve Board of Governors.

The Supreme Court recently ruled that Cook can stay in her position while lower courts address the case, citing a need to give her notice and an opportunity to respond prior to removal. This decision has been seen as a significant blow to President Trump's efforts to remove Cook from the Fed.