Donald Trump Reignites Effort to Remove Federal Reserve Governor Lisa Cook
The White House has started a new attempt to remove Lisa Cook from her position. Ms. Cook is a governor at the Federal Reserve, the central bank of the United States. She is the first Black woman to serve in this important role.
On Friday, reports said President Donald Trump’s administration sent a letter to Ms. Cook. The letter warned that her job was at risk. It stated that the President was thinking about firing her.
The letter was signed by White House Deputy Chief of Staff Dan Scavino. It gave Ms. Cook three weeks to answer claims of mortgage fraud. The letter also warned that such a crime could lead to 30 years in prison. It claimed her actions showed carelessness and made her untrustworthy as a governor.
Mr. Trump first made these claims against Ms. Cook in August 2025. He wanted to fire her then. No other US president has tried to remove a Federal Reserve governor since the bank started in 1913. Federal Reserve governors serve 14-year terms. They can only be fired by a president for a good reason. This rule protects the central bank from political influence.
The claims against Ms. Cook say she listed two homes as her main residence. One home was in Georgia, and the other was in Michigan. This could have helped her get better mortgage rates. So far, there is no clear proof she tried to trick lenders. This makes a fraud case unlikely to succeed.
In June, the US Supreme Court blocked Mr. Trump’s first attempt to fire Ms. Cook. However, the court’s decision did allow the President to remove leaders of some other government agencies.
The letter sent to Ms. Cook this week was dated August 5. On that same day, Ms. Cook spoke at an economic event in Alaska. She said that inflation was “too high.” She also said she was ready to raise interest rates. Other Federal Reserve officials share this view.
Mr. Trump often disagrees with the Federal Reserve about interest rates. He wants to cut them quickly. The Federal Reserve keeps rates high to fight inflation. Ms. Cook was chosen for her role in 2022 by President Joe Biden. Mr. Biden is Mr. Trump’s election rival.
Mr. Trump had also threatened to fire former Federal Reserve Chair Jerome Powell. This was because Mr. Powell did not lower rates as Mr. Trump wanted. Kevin Warsh, whom Mr. Trump appointed, became the new chair in May. He has not cut interest rates yet, as inflation remains high.
Ms. Cook’s lawyers said there is “no valid cause” to remove her. Her lawyer, Abbe D Lowell, stated they will challenge this new reason. They will fight to keep her job and protect the Federal Reserve’s important role.
