Trump Renews Effort To Remove Fed Gov. Lisa Cook After Supreme Court Setback
By CU Today Staff —
WASHINGTON—The White House has launched a new effort to remove Federal Reserve Gov. Lisa Cook, notifying her that President Donald Trump is “considering” firing her and giving her until Aug. 26 to respond to allegations of mortgage fraud.
The Aug. 5 letter, signed by White House Deputy Chief of Staff Dan Scavino, is aimed at addressing procedural deficiencies that led the U.S. Supreme Court in June to block Trump’s earlier attempt to oust Cook, according to reporting by ABC News, Reuters, CBS News and Axios.
The letter revives allegations that Cook made false statements involving mortgages on properties in Michigan and Georgia before joining the Fed. Scavino wrote that the allegations bear on Cook’s “honesty, trustworthiness, and competence” and could constitute “cause” for removal, CBS News reported. Cook has denied wrongdoing and has not been charged with a crime. Her attorneys, Abbe Lowell and Norm Eisen, called the allegations “baseless” and said they will again challenge any attempt to remove her.
The renewed effort follows the Supreme Court’s June 29 decision rejecting the administration’s request to allow Cook’s removal while litigation continued. In its 5-4 ruling, the court said Trump had failed to provide Cook the procedural protections required by law, including notice, an explanation of the evidence and an opportunity to respond before a final decision. The court did not decide whether the allegations themselves constitute sufficient cause to remove Cook, leaving that question open for further litigation.
The dispute carries potentially significant implications for the Fed’s independence. The Supreme Court stressed that Congress gave Fed governors fixed terms and permitted their removal only “for cause,” and said monetary policy should not be subject to political interference. Reuters noted that no president since the Federal Reserve was created in 1913 had attempted to remove a sitting governor before Trump’s initial move against Cook. If Trump proceeds after Cook’s Aug. 26 response, the dispute is expected to return quickly to the courts.
Originally reported by CU Today.