Fed Governor Cook's Lawyer Rebuts Trump's Fraud Claims, Says No Grounds for Dismissal

Federal Reserve Governor Lisa Cook's attorney has formally responded to the White House, rejecting accusations of mortgage fraud that President Donald Trump has cited as grounds for her dismissal. In a letter, lawyer Abbe David Lowell stated that the allegations rely on "untried and unproven claims of criminal wrongdoing" and asserted that Cook has never committed mortgage fraud or any intentional misconduct.

Lowell's rebuttal comes in response to a White House letter dated August 5, which informed Cook that the president was considering her removal due to alleged false statements on mortgage agreements. The letter set a response deadline of August 26, just two days before Fed Chairman Kevin Warsh is scheduled to speak at the Jackson Hole economic symposium.

The dispute traces back to accusations first made last August by Federal Housing Finance Agency Director William Pulte, who suggested Cook had committed bank fraud by claiming multiple homes as her primary residence. Trump amplified these claims on social media and announced his intention to dismiss her, marking the first attempt by a U.S. president to remove a central banker in the Fed's history.

Cook, the first Black woman to serve as a Fed governor, has denied any wrongdoing and characterized the allegations as a pretext for removing her over monetary policy differences. She filed a lawsuit to retain her position, and in June the Supreme Court ruled 5-4 that Fed officials cannot be fired at will by a president, though the case was returned to lower courts to determine whether cause for termination exists.

The White House's latest letter, signed by Deputy Chief of Staff Dan Scavino, also suggested that even absent fraud, Cook's alleged misstatements constitute negligence that undermines her trustworthiness. However, there has been no indication that a criminal investigation into Cook is proceeding. Reports have noted that Cook indicated to a lender that one property was a vacation home, and local tax authorities in Michigan found no rules violations regarding her primary residence declaration.

Trump has long pushed for lower interest rates and has previously threatened to fire Fed Chairman Jerome Powell. The current effort against Cook is seen as part of a broader campaign to challenge the central bank's independence, with a majority of Fed board members having been appointed by Trump's predecessor, Joe Biden.