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Federal Reserve Governor Lisa Cook is challenging President Donald Trump’s renewed effort to remove her from the central bank’s governing board.
In a letter to Cook, the administration wrote, “You are hereby provided notice that the President is considering removing you from your position.” The White House gave Cook until Wednesday (August 26) to respond.
Cook’s attorneys responded Wednesday to the administration’s allegations that she committed mortgage fraud, arguing there is no legal basis or “cause” for removing her, according to The Associated Press. They said the mortgage discrepancies cited by the administration were inadvertent and did not constitute fraud.
Cook has served on the Federal Reserve Board since 2022 and is the first Black woman to hold the position.
Trump first made the mortgage fraud allegations against Cook in August 2025, claiming she improperly listed two properties as primary residences on mortgage applications.
Three days after Trump announced her removal, Cook sued the administration in federal court, arguing that the allegations did not provide legal cause for firing her. A federal judge later blocked her removal while the case proceeded.
After the Supreme Court blocked Trump from firing her in June, the administration revived the allegations this month as it moved forward with another effort to remove her, according to Al Jazeera.
As previously reported by BIN, the Supreme Court allowed Cook to remain in her position while she challenged Trump’s effort to remove her. The justices did not rule that Trump could never remove Cook, but said she needed to receive proper notice and an opportunity to respond to the allegations — setting the stage for the administration’s latest notice.
The renewed effort has also raised concerns about the Federal Reserve’s independence at risk. If Trump succeeds in removing Cook, he could appoint her replacement and give his appointees a majority on the Fed’s seven-member board, according to The Washington Post.
Trump has repeatedly pressured the central bank to cut interest rates, and economists warn that political pressure on the Fed could lead to rates being kept too low, potentially fueling inflation. A loss of confidence in the Fed’s independence could also push investors to demand higher returns on longer-term debt, raising mortgage rates and other borrowing costs.
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