Washington, D.C. — Federal Reserve Governor Lisa Cook is pushing back against President Donald Trump’s renewed effort to remove her from the central bank, arguing that disputed mortgage paperwork does not provide legal grounds for dismissal.
Cook’s attorney, Abbe Lowell, told the White House Wednesday that allegations she made false statements on mortgage applications remain unproven and do not constitute the “cause” required to remove a Federal Reserve governor.
The dispute began after Federal Housing Finance Agency Director William Pulte accused Cook of claiming more than one property as her primary residence. Cook has denied committing mortgage fraud or intentionally misleading lenders. Reuters previously reported that documents showed Cook identified one property as a vacation home.
Trump initially attempted to fire Cook last year, but the Supreme Court ruled 5-4 in June that Federal Reserve officials cannot be removed at will. The justices allowed Cook to remain in office while leaving open whether proven misconduct could constitute sufficient cause for removal.
The White House renewed the effort Aug. 5, giving Cook three weeks to respond to its allegations. Administration officials argue that even if Cook did not commit fraud, inaccuracies on mortgage documents raise questions about her judgment and trustworthiness.
Cook maintains the allegations are being used as a pretext to increase presidential influence over Federal Reserve interest-rate policy.
Sources
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