Trump is Trying to Fire Lisa Cook Again. He Still Wants to Stack the Fed with Allies.

White House claims Cook committed mortgage fraud

Federal Reserve governor Lisa Cook has been targeted by the White House for removal.

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Two months after he was blocked by the Supreme Court, President Donald Trump has resumed his effort to oust Federal Reserve governor Lisa Cook as part of an effort to stack the central bank's board with allies.

Trump tried to fire Cook "for cause" last year on allegations of mortgage fraud, but the court ruled in June that she wasn't given adequate opportunity to defend herself. The narrow ruling did not preclude her eventual removal.

Trump, who in May appointed Kevin Warsh as new chair of the Fed, has repeatedly called for lower interest rates. The president constantly attacked Warsh's predecessor, Jerome Powell, for not aggressively reducing borrowing costs.

The current the 12-member Fed board that determines a key U.S. interest rate has three Trump appointees.

The president is aiming to reshape the board to surround Warsh with allies, but he has few options for doing so. Even if Cook were removed, the majority of the Fed's rate-setting panel would still consist of people not appointed by Trump.

On Aug. 5, the White House sent a letter to Cook's attorneys asking her to respond to allegations she made false statements on mortgage applications for several of her homes. The White House demanded a response in 21 days.

In a statement, Cook's lawyers said: "No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent - there is no valid cause for removing Governor Cook."

-Jeffry Bartash