Federal Reserve Board Governor Lisa Cook has pushed back against a revived attempt by United States President Donald Trump to remove her from the central bank, with her legal team denouncing mortgage fraud claims as unfounded. In a five-page letter sent to the White House on Wednesday, attorney Abbe Lowell told White House counsel David Warrington that the allegations remain unfounded and untrue,
according to CNBC.
Lisa Cook Defends Against Renewed Ouster Bid
The response was submitted ahead of a deadline set by White House Deputy Chief of Staff Dan Scavino, who had warned Cook in a letter three weeks earlier that there was sufficient reason to believe that you made false statements on one or more mortgage agreements.
The administration’s latest push follows a Supreme Court ruling in late June that blocked an earlier removal attempt while leaving a procedural path open for the president to try again.
Legal Defense and Claims of Political Pretext
Cook’s defense team, which includes attorneys Abbe David Lowell and Norman Eisen, argued that the administration lacks legal grounds to oust her under the Federal Reserve Act, which permits the removal of central bank governors only for cause
rather than for political reasons. Al Jazeera reported that the attorneys wrote: For the second time in a year, we have explained why there is no legal basis for President Trump to remove Governor Cook for cause.
Administration officials previously accused Cook of declaring two separate properties as primary residences simultaneously on mortgage applications to secure better rates or down payments. Lowell countered that any error on a form provided by a lender was an unintentional, inadvertent oversight occurring in Cook’s private capacity before she took office. The legal team also contended that President Trump, Treasury Secretary Scott Bessent, and Attorney General Todd Blanche had reportedly listed multiple properties as primary residences in the past, making the targeting of Cook selective.
Background on the Conflict and Fed Independence
The dispute stems from a criminal referral originally sent to the Department of Justice by Federal Housing Finance Agency Director Bill Pulte in August 2025. Trump first moved to fire Cook—an appointee of former President Joe Biden—at that time, prompting Cook to file a lawsuit challenging the dismissal. The Supreme Court subsequently ruled five to four that Cook was entitled to notice and an opportunity to respond before any removal for cause,
upholding lower court protection while opening a path for renewed proceedings.
Associated Press noted that if Trump succeeds in removing Cook, he would be able to name a replacement, giving his appointees a majority on the Fed’s governing board. Trump has repeatedly pressured the central bank to lower benchmark interest rates rapidly to combat inflation.
Implications for Monetary Policy
The conflict over Cook’s tenure highlights broader tensions regarding the central bank’s institutional independence. Economists have warned that slashing interest rates too quickly could flood markets with cash and weaken the dollar. According to Moneycontrol, the Federal Reserve’s next policy meeting is scheduled for September 15–16, with officials divided on whether rates should stay unchanged or be raised to counter persistent inflation.
Legal analysts anticipate that the White House’s latest move will spark fresh courtroom battles centered on the definition of for-cause removal and the statutory protections established by Congress under the Federal Reserve Act of 1913 to shield monetary policy from political interference.
