Cook Rejects Trump’s Renewed Attempt To Remove Her From Fed
By CU Today Staff —
WASHINGTON—Federal Reserve Gov. Lisa Cook told the White House Wednesday that President Donald Trump has no legally valid basis to remove her, rejecting renewed allegations that she committed mortgage fraud before joining the central bank.
“Governor Cook has never committed mortgage fraud or any intentional wrongdoing, and there is no legally cognizable cause for removing her from the Federal Reserve Board,” attorney Abbe Lowell wrote, according to Reuters.
The allegations originated with then-Federal Housing Finance Agency Director William Pulte, who accused Cook of identifying properties in Michigan and Georgia as primary residences on 2021 mortgage documents. Cook’s attorneys said she initially sought information about financing the Atlanta condominium as a vacation home, identified it elsewhere as a second home and consistently listed Michigan as her permanent residence. Any conflicting notation was an “entirely inadvertent oversight,” they said. Cook has not been charged with a crime, and the allegations have not been proven in court, according to AP.
The allegations involve mortgages issued by two credit unions. As CUToday.info previously reported, the $1.4-billion University of Michigan Credit Union originated a $203,000 mortgage on Cook’s Michigan property, while the $6.7-billion Bank Fund Credit Union originated a $540,000 mortgage on her Atlanta condominium. CUToday subsequently reported that a Bank Fund CU loan estimate identified the Atlanta property as a “vacation home,” potentially supporting Cook’s contention that she disclosed its intended use to the lender.
Trump first attempted to remove Cook in August 2025, but the Supreme Court ruled 5–4 in June that she could remain on the Fed board while her challenge proceeded. The court said the president could try again after giving Cook notice and an opportunity to respond. White House Deputy Chief of Staff Dan Scavino subsequently informed Cook that Trump was considering removing her and gave her until Aug. 26 to answer the allegations. Supreme Court decision
The dispute could again test the boundaries of Fed independence and the Federal Reserve Act’s provision allowing governors to be removed “for cause.” Removing Cook would allow Trump to nominate a replacement and potentially give his appointees a board majority as he continues pressing the central bank for lower interest rates. The White House had not responded to Cook’s letter as of Wednesday night, according to Bloomberg Law
Originally reported by CU Today.