Politics
Fed Governor Lisa Cook's lawyer rejects Trump's renewed efforts to oust her
Attorneys for the Federal Reserve governor say mortgage fraud allegations are unfounded and do not meet the legal threshold for removal.
The short version
- Attorneys for Federal Reserve Governor Lisa Cook sent a response to the White House on Wednesday, arguing there is no legal basis for President Donald Trump to remove her.
- The White House had set a Wednesday deadline for Cook to respond to allegations that she committed mortgage fraud by listing two properties as primary residences.
- Cook's defense maintains any paperwork discrepancies were unintentional errors that do not constitute the 'cause' required for removal under the Federal Reserve Act.
Key facts
- Lawyer Abbe Lowell sent a five-page defense letter to White House counsel David Warrington ahead of a Wednesday deadline set by Trump aide Dan Scavino.[Associated Press · CNBC]
- The White House's effort to remove Cook stems from allegations raised in late August 2025 by Federal Housing Finance Agency Director Bill Pulte, who accused Cook of claiming two properties as primary residences simultaneously.[Associated Press · CNBC]
- Cook's lawyers, Abbe Lowell and Norman Eisen, stated that any paperwork mistake was an inadvertent oversight that occurred in her private capacity before taking office, and did not involve intentional deception.[Associated Press · CNBC]
- The U.S. Supreme Court blocked Trump's initial attempt to fire Cook in late June, but ruled that the president could try again if he provided proper notice and an opportunity to contest the decision.[Associated Press · CNBC]
- Cook's legal team argued that the administration's actions are an attempt by President Trump to pressure the Federal Reserve to lower interest rates.[Associated Press · CNBC]
What remains uncertain
- It remains unclear how the Trump administration will respond to Cook's defense letter, or whether the President will formally move forward with a second firing attempt.[Associated Press · CNBC]