The White House stated this week that President Donald Trump is "considering" dismissing Federal Reserve Board member Lisa Cook, reigniting a process that was halted by the Supreme Court in June.
White House presidential assistant Dan Scavino wrote in a letter to Cook on Wednesday that there is "good reason to believe you made false statements in one or more mortgage loan agreements." These allegations mirror those raised last year when Trump and his allies first attempted to remove Cook from the central bank.
Cook has denied the claims and filed a lawsuit challenging the dismissal. A federal court blocked Trump's removal action while the lawsuit was pending. In late June, the Supreme Court upheld that decision with a 5-4 ruling, rejecting the president's challenge. However, Chief Justice John Roberts noted that the ruling did not prevent Trump from trying again to remove Cook over the mortgage fraud allegations.
Roberts wrote that any new dismissal attempt would require additional steps to protect Cook's constitutional due process rights. Scavino, who also serves as Trump's deputy chief of staff and director of the Office of Presidential Personnel, wrote that he sent Wednesday's letter "pursuant to the opinion of the Supreme Court." He instructed Cook to provide "an explanation of the false statements and corresponding evidence" within three weeks.
Cook's attorney, Abe Lowell, issued a statement saying the allegations "are as baseless now as they were a year ago when President Trump sought to remove Governor Cook and interfere with the independence of the Federal Reserve." "Regardless of what President Trump tries to do next, based on the facts and Supreme Court precedent, one thing is clear—there is no lawful basis to remove Governor Cook," Lowell's statement read. "As we have done before, we will challenge this latest excuse to defend her position and the historic role of the Federal Reserve."
The Federal Reserve declined to comment on the White House letter. Trump's initial attempt to dismiss Cook, who was appointed by former President Joe Biden, came as he intensified pressure on the Fed to significantly cut interest rates. The mortgage-related allegations were raised by Federal Housing Finance Agency Director Bill Pult, who has been criticized as Trump's "attack dog." Pult has also targeted other political opponents of Trump, including New York Attorney General Letitia James, who faces similar mortgage-related misconduct allegations.
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