Trump renews effort to remove Fed governor Lisa Cook amid mortgage-fraud allegations

The White House has revived efforts to remove Federal Reserve Governor Lisa Cook, sending her a letter that says the president is considering dismissing her from office. The move comes as Donald Trump continues to press for faster interest-rate cuts, despite inflation remaining a concern. It also reopens a direct challenge to the independence of the US central bank.

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According to the letter, Cook was given three weeks to respond to unproven allegations that she committed mortgage fraud. The letter was signed by White House Deputy Chief of Staff Dan Scavino and warned that the alleged offence could carry a prison sentence of up to 30 years. It also said her conduct amounted to negligence that called into question her trustworthiness as a Federal Reserve governor.

Cook is the first Black woman to serve as a governor at the Federal Reserve, and she was nominated in 2022 under President Joe Biden. Trump first raised the claims against her in August 2025 in an earlier attempt to remove her from the role. No other president since the central bank was founded in 1913 has sought to oust a Federal Reserve governor, and the law allows removal only "for cause".

The dispute matters because the Federal Reserve is designed to operate at arm's length from political pressure. That independence is intended to help the central bank make decisions based on economic conditions rather than short-term political goals. Trump's renewed effort comes amid a broader campaign to lower borrowing costs and to remove officials appointed under Democratic administrations.

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The allegations against Cook centre on claims that she listed two homes as her primary residence, one in Georgia and one in Michigan, which could have affected mortgage terms. The supporting material says there is no conclusive evidence that she intended to deceive lenders, making a successful fraud case unlikely. A Supreme Court ruling in June also blocked Trump's earlier attempt to fire her, although it allowed him to remove the heads of other independent agencies.

The letter sent to Cook was dated August 5, and she spoke publicly on the same day, according to the supporting material. It is not clear how she will respond, or whether the administration will proceed with a formal removal attempt. What happens next may depend on whether the White House can establish legal grounds for dismissal and whether the dispute returns to court.

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