BUSINESS

Trump Revives Bid to Fire Fed Governor Lisa Cook

▪

Read, Watch or Listen

Media Bias Meter

Sources: 23

Center 100%

Sources: 23

President Donald Trump has launched a renewed effort to remove Federal Reserve Governor Lisa D. Cook from her position, opening a new front in a battle that began nearly a year ago. The White House sent Cook a letter on Wednesday, signed by Deputy Chief of Staff Dan Scavino, informing her that the president is "considering" removing her and giving her 21 days to respond to allegations of mortgage fraud. Cook has until August 26 to contest the move. This escalation follows a significant legal setback for Trump in June, when the Supreme Court ruled 5-4 that Cook should have been given formal notice and a chance to contest the accusations before any removal attempt. The court allowed Cook to continue serving her term, which ends in 2038, but left open the possibility for Trump to try again with proper procedure. Chief Justice John Roberts wrote in a footnote that nothing forbids the president from "trying again" provided Cook is given proper notice. The allegations against Cook stem from a criminal referral made in August 2025 by Bill Pulte, director of the Federal Housing Finance Agency, accusing her of mortgage fraud. The referral alleges Cook declared two different properties—one in Ann Arbor, Michigan, and one in Atlanta—as her "primary residence" on mortgage applications. Homebuyers can receive lower mortgage rates and smaller down payments on primary residences compared to second homes or vacation properties. Cook has not been charged with any crime and has denied any wrongdoing. Her lawyer, Abbe Lowell, previously argued in a November letter that Cook has mostly lived in the Ann Arbor property since purchasing it in 2005, making it accurate to list as her primary residence on a June 2021 refinancing application. Lowell said an July 2021 document referring to the Atlanta condo as a "primary residence" was an "isolated notation" that did not reflect intent to defraud. In the new letter, Scavino wrote that Cook's actions "may be sufficient to demonstrate that you committed a crime" and that she "could have received favorable loan terms under fraudulent circumstances". He added that "at a minimum, this conduct was grossly negligent and demonstrates that you are unfit for the office". Lowell responded in a statement: "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". He vowed to challenge the latest attempt: "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". The Federal Reserve Act stipulates that a president can remove a Fed official only "for cause," which has long been interpreted to mean gross negligence or dereliction of duty. The Supreme Court's June ruling did not offer an opinion on the specific allegations against Cook. The letter was first reported by ABC News. Cook, who was nominated to the Fed's Board of Governors by President Joe Biden, has aggressively defended herself, saying Trump attempted to oust her "on a manufactured pretext because I refused to bow to political pressure and continued to set interest rates based only on what would best serve the American people".

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

· On August 25, 2025, Trump first attempted to fire Lisa Cook.
· On August 25, 2025, Bill Pulte made a criminal referral against Cook.
· On September 9, 2025, a district court barred Trump from firing Cook.
· On January 21, 2026, Supreme Court heard arguments in Cook's case.
· On June 29, 2026, Supreme Court blocked Trump's firing attempt in 5-4 ruling.
· On June 29, 2026, Chief Justice Roberts allowed Trump to "try again" properly.
· On June 29, 2026, Trump vowed to "take appropriate action immediately" against Cook.
· On August 5, 2026, the White House sent Cook a formal notice letter.
· On August 7, 2026, multiple outlets reported the administration's renewed effort.
· The letter gives Cook until August 26, 2026 to respond to allegations.
· Cook will likely challenge the removal in court again.
· The legal battle over Fed independence will intensify significantly.
· Trump may face another Supreme Court defeat on removal.
· Cook could be removed if cause is legally established.
· The Fed's interest rate policy may face more political pressure.

News Intelligence

Immediate US impact: Threatens Federal Reserve independence and monetary policy stability.
Possible long-term US impact: Could reshape presidential power over independent agencies permanently.
Most affected groups: Investors, consumers, Fed officials, and financial markets nationwide.
What readers should prioritise: Monitor legal challenges and Fed's interest rate decisions closely.

Media Bias

Articles Published:: 23
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 23

Explain Framing

Left: Trump undermines Fed independence to pressure interest rates politically. Center: White House follows Supreme Court procedure in renewed removal effort. Right: President exercises executive authority to remove unfit Fed governor.