On August 8, U.S. media reported that the Trump administration sent a letter to Lisa Cook, a governor of the Federal Reserve, warning that she is under consideration for dismissal. The letter, signed by White House Deputy Chief of Staff Dan Scavino, states: "You are hereby notified that the President is considering your removal." It gives Cook three weeks to respond to unproven allegations of mortgage fraud, which could carry a penalty of up to 30 years in prison if convicted.
This is Trump's second attempt to dismiss Cook, who was appointed in 2022 under President Joe Biden. In June, the U.S. Supreme Court blocked his first removal effort, though it opened the door for the president to fire leaders of other independent agencies.
Trump's allegations focus on Cook having listed two homes in Georgia and Michigan as her primary residences, potentially allowing her to receive preferential mortgage rates. However, no convincing evidence has emerged that she deliberately deceived lenders, making prosecution unlikely.
On the same day the letter was sent, Cook spoke at an economic conference in Alaska, saying inflation is "too high" and she is "ready to act" by raising interest rates—a stance shared by many Fed officials. The White House and the Fed have clashed over rate policy, with Trump repeatedly calling for rapid cuts to boost the economy while the Fed maintains higher rates to curb inflation.
U.S. law allows presidents to remove Fed governors only "for cause," a high legal standard designed to shield the central bank from political pressure. A governor's full term lasts 14 years.
In a statement, Cook's legal team argued there is "no cause" for her removal. Attorney Abbe D. Lowell said: "We will continue to challenge this action, as we have before, to protect Governor Cook's position and the Fed's historic role."
