Federal Reserve Governor Lisa Cook is pushing back against the Trump administration's latest effort to remove her from the central bank's Board of Governors, a move that comes despite a Supreme Court ruling that temporarily blocked her ouster. Her legal team, led by Abbe Lowell and Norm Eisen, issued a forceful rebuttal on Wednesday, asserting that President Trump has “no legal basis” to dismiss their client.
The dispute centers on allegations that Cook committed mortgage fraud by designating properties in Michigan and Georgia as her primary residences to secure lower interest rates. Cook has acknowledged an error in describing one of the properties as a “vacation home,” but her lawyers argue this mistake falls far short of justifying removal. “An inadvertent error is not fraud, as the President and a third of his cabinet should know because they reportedly did the same thing,” Lowell and Eisen said in a statement, adding that the attacks are “not about real estate paperwork; they are an attempt by President Trump to force the Federal Reserve to bend to his will.”
The renewed push to fire Cook follows a referral from Federal Housing Finance Agency Director Bill Pulte, who suggested that Cook illegally claimed the properties as primary residences. Trump first attempted to remove her in August 2025, but the Supreme Court ruled 5-4 in June that she could remain in her position while the case proceeds in lower courts. Chief Justice John Roberts wrote that the president had not provided Cook with sufficient process to contest the allegations, though he noted that the decision on whether to fire her “will depend in part on the underlying facts.”
Following the high court's ruling, Trump vowed on social media to take “appropriate action immediately,” stating, “The Cook Lawsuit, having to do with her suitability in sitting on the Board of the Federal Reserve, was sent back by the Supreme Court on a strictly procedural basis, we will take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America!”
In a letter obtained by The Hill, White House presidential aide Dan Scavino informed Cook that Trump was “considering” her removal, citing “sufficient reason to believe that you made false statements on one or more mortgage agreements.” The letter demanded a written response and accompanying evidence by Wednesday, which Cook's lawyers have now provided, reiterating that the allegations are “as baseless now as they were a year ago.”
Lowell also sent a separate letter to the White House, arguing that there “is no legally cognizable cause for removing her from the Federal Reserve Board.” The legal battle underscores broader tensions between the Trump administration and the Federal Reserve's independence, a theme that has resonated in other policy areas, including debates over data center policies and economic strategies abroad.
Cook's lawyers accused the president of interfering with the Fed's independence, stating, “No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent – there is no valid cause for removing Governor Cook.” The case now returns to the lower courts, where Cook will continue to press her claims. The outcome could have significant implications for the Fed's autonomy and the limits of presidential power over independent agencies.
Observers note that the administration's aggressive stance toward the Fed is part of a broader pattern of challenging institutional independence, as seen in personal diplomatic overtures and legal battles over voting rules. For now, Cook remains on the board, and her legal team is confident that the courts will uphold her position.
