White House Revives Attempt to Fire Fed Governor Lisa Cook

Dow Jones02:14

WASHINGTON -- President Trump is reviving his attempt to fire Federal Reserve governor Lisa Cook, pressing her to respond to allegations of mortgage fraud that Cook has called baseless.

A top aide to Trump sent a letter this week to Cook saying the president was "considering removing you from your position" based on the allegations and asking her to provide a written response by the end of August.

The Supreme Court in June blocked Trump from firing Cook without meaningful legal scrutiny and Trump's latest effort appears to be an attempt to follow a process that would allow her to respond to the allegations.

Trump cited allegations by one of his top housing officials, Bill Pulte, that Cook in 2021 lied about her primary residence on mortgage paperwork to obtain more favorable terms from a lender. At the time, Trump gave Cook no formal opportunity to contest the allegations.

She denies any wrongdoing. Her lawyers have said the matter was, at worst, an inadvertent error and that the allegations are merely a pretext for Trump's true goal of controlling monetary policy by installing loyalists at the Fed.

"These allegations are as baseless now as they were a year ago when President Trump tried to remove Governor Cook and interfere with the independence of the Federal Reserve," said Cook's lawyer Abbe Lowell, on Friday. "As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed."

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At the time, Trump gave Cook no formal opportunity to contest the allegations. \n</p>\n<p>\n  She denies any wrongdoing. 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