Trump renews push to oust Fed governor Lisa Cook after Supreme Court ruling
President Donald Trump is moving again to remove Federal Reserve Governor Lisa Cook, reviving a fight that tests how far the White House can go
President Donald Trump is moving again to remove Federal Reserve Governor Lisa Cook, reviving a fight that tests how far the White House can go against the US central bank. The renewed push comes just weeks after the Supreme Court said Cook could stay in her job while she challenges Trump’s earlier attempt to fire her.
The White House sent Cook a letter this week saying Trump was considering removing her over mortgage fraud allegations and giving her three weeks to answer, according to reports seen by Reuters and first reported by ABC News. The letter says Cook falls well short of the standard expected of a Fed governor. Her lawyer calls the claims baseless.
Fresh notice, old fight
The move keeps alive a sharp legal clash over the Fed’s independence, a principle watched closely far beyond Washington because of the central bank’s role in steering the world’s biggest economy. Trump first tried to remove Cook last summer, setting off the court fight that reached the nation’s highest bench. Now he is trying again.
Short. Direct. Again.
The Supreme Court’s June ruling, by a 5-4 vote, blocked Trump’s effort to immediately oust Cook and said she was entitled to remain as governor while the case moved forward. In its majority opinion, the justices said Trump had failed to give her the procedural protections required by statute, leaving her unable to properly dispute the charges.
What the letter says
The new notice appears designed to comply with that ruling. It gives Cook three weeks to respond to the mortgage fraud allegations, and it points to what the White House sees as grounds for removal. According to the reports, the letter was signed by White House personnel office director Dan Scavino.
Cook has denied the allegations, and her lawyer has said there is no valid cause to remove her. The administration has already appealed a lower court ruling that sided with Cook, and the latest step could trigger another round of litigation.
The Supreme Court left open the possibility of removing a Fed governor “for cause,” and Chief Justice John Roberts wrote in a footnote that nothing barred Trump from trying again if Cook was given proper notice and a chance to respond. After the June decision, Trump said he would do so. The next deadline now sits three weeks away.
