Fed Governor Cook Rejects White House Bid to Remove Her

Federal Reserve Governor Lisa Cook has formally pushed back against the Trump administration's renewed attempt to remove her from the central bank's board, arguing that the effort has no legal foundation.

In a letter sent late Wednesday, Cook responded to a White House ultimatum that had given her until that day to address allegations tied to her past mortgage applications. The administration has accused her of improperly listing two properties as primary residences to secure better loan terms.

Cook acknowledged that she referred to one of the two homes as a vacation property in some documents, but insisted she never intended to deceive lenders. She described the discrepancies as inadvertent errors that do not meet the legal standard for removal.

Her attorneys, Abbe Lowell and Norman Eisen, issued a statement defending her record. They noted that the alleged mistake was not fraud and pointed out that the president and several cabinet members have reportedly made similar errors. They framed the attack as an effort to pressure the Federal Reserve into aligning with the president's policy preferences.

The dispute dates back a year, when Trump first sought to dismiss Cook over the same allegations. That attempt was challenged in court, and the Supreme Court allowed her to remain in her post while litigation continues. The justices, however, left open the possibility that the president could try again if proper procedures were followed.

If Cook were removed, Trump would be able to appoint a successor, giving his picks a majority on the Fed's board. The president has repeatedly criticized the central bank for not cutting interest rates quickly enough, raising concerns about political interference in monetary policy.