President Donald Trump is considering renewing his push to fire Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, according to both FOX Business and CNBC World reports [1][2]. The White House, through Personnel Office Director Dan Scavino, sent a letter to Cook this week, stating there is 'sufficient reason to believe that you made false statements on one or more mortgage agreements' and requesting a written response with evidence within three weeks [1][2]. These allegations are the same as those that prompted Trump to announce Cook's termination in August 2025, which led to an ongoing legal battle over the president's authority to remove members of the Federal Reserve Board [1][2].
Earlier this summer, the Supreme Court issued a 5-4 ruling that allowed Cook to remain in her role while the case challenging her dismissal plays out [1][2]. Chief Justice John Roberts, writing for the majority, clarified that the Court's decision did not address the underlying facts of the allegations but focused on the legal standards for removal, stating, 'the ultimate question of whether the President can remove Cook for cause will depend in part on the underlying facts' [1]. The Supreme Court's ruling upheld a federal court's decision blocking Trump from firing Cook while her lawsuit was pending [2]. However, Roberts noted that the decision does not prevent Trump from attempting to remove Cook again based on the mortgage fraud allegations [2].
Abbe Lowell, Cook's lawyer, responded to the renewed effort by stating, 'These allegations are as baseless now as they were a year ago when President Trump tried to remove Governor Cook and interfere with the independence of the Federal Reserve. 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. As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed' [2].
The White House has given Cook 21 days to respond to the allegations, and the legal debate over the president's ability to remove Federal Reserve Board members continues [1][2]. Both sources emphasize that this is a developing story and advise readers to check back for updates [1][2].
CONCLUSION
President Trump's renewed effort to remove Lisa Cook from the Federal Reserve Board has reignited legal and political debate over the independence of the central bank. The Supreme Court's recent ruling allows Cook to remain in her position for now, but the White House's latest move signals ongoing uncertainty. Market participants should monitor developments closely, as the outcome could impact Federal Reserve governance and policy stability.