Fed Governor Lisa Cook Refutes Legal Basis for Trump’s Attempt to Dismiss Her

Federal Reserve Governor Lisa Cook wrote to the White House on Wednesday asserting that the administration has no legal justification to fire her from the central bank’s governing board. The claim follows President Trump’s renewed effort to remove Cook, a move that previously was halted by the Supreme Court, which allowed her to remain in office while related litigation proceeds. The Court indicated that a future removal could only occur if proper notice and an opportunity to contest the action were provided.

Cook’s attorneys, Abbe Lowell and Norman Eisen, said in a statement that the president’s accusations lack legal merit and suggested the allegations are politically motivated. They noted that an “inadvertent error is not fraud,” referencing the administration’s own past handling of similar issues.

The controversy centers on allegations that Cook listed two properties as primary residences on mortgage applications, a designation that can affect loan terms. Cook said she described one property as a “vacation home” in some documents and maintained that any mistake was unintentional and did not constitute fraud.

If the president were able to remove Cook, he could appoint a successor, potentially giving his appointees a majority on the Fed board, a development Trump has long criticized as hindering his preferred monetary policy direction.