Fed’s Lisa Cook Rejects Trump Firing Threat, Denies Mortgage Fraud

Washington was the setting for a renewed clash between the Federal Reserve and the White House on Wednesday, as Governor Lisa Cook rejected a fresh attempt by President Donald Trump to remove her from the central bank’s governing board. Cook responded to the threat in a letter late that evening.

Trump first moved to fire Cook a year ago over allegations that she committed mortgage fraud, a charge she denies. The claim has not been proven or examined in court. A White House aide earlier this month set Wednesday as the deadline for her to respond to the renewed effort.

Trump administration officials have accused Cook of declaring two homes as “primary residences” in mortgage applications. Primary residences can sometimes qualify for lower rates or down payments than second homes. Cook said she had described one of the two properties as a “vacation home” in some documents and did not seek to deceive lenders.

She said any mistakes were unintentional and did not meet the threshold required to justify removal. Her lawyer said the inadvertent error involved listing an apartment in Atlanta as a primary residence.

“For the second time in a year, we have explained why there is no legal basis for President Trump to remove Governor Cook for cause,” said her attorneys, Abbe Lowell and Norman Eisen. “These attacks on Governor Cook are not about real estate paperwork; they are an attempt by President Trump to force the Federal Reserve to bend to his will.”

The Supreme Court in late June blocked Trump from firing Cook, allowing her to remain in her position while the case is litigated. The justices left the president a path to try again, provided he gave proper notice and a chance to contest the removal.

The dispute is the latest in a series of confrontations between the administration and the central bank. The renewed push to oust Cook over the mortgage claims follows earlier legal battles involving Fed leadership and questions over the institution’s independence.

If Trump succeeds in removing Cook, he would be able to name a replacement, giving his appointees greater influence over the board. Cook, an economist, joined the Federal Reserve Board of Governors in 2022 as its first Black woman member.

Cook remains in her post while the case continues through the courts.

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