Trump administration seeks to dismiss Fed Governor Lisa Cook despite Supreme Court ruling

The White House announced a new attempt to dismiss Federal Reserve Governor Lisa Cook, two months after the Supreme Court ruled she could remain in her post while she challenges the administration’s termination effort in court. The court’s 5-4 decision in June said Cook, a Biden-nominated board member, may stay until her lawsuit is resolved, and Chief Justice John Roberts noted that the president may try again to fire her if proper notice and an opportunity to contest are provided.

"I will take appropriate action immediately," President Donald Trump said after the opinion was released.

In a letter obtained by the Associated Press, White House aide Dan Scavino told Cook that the president was "considering removing you from your position" and gave her until Aug. 26 to respond to the notice.

The removal effort stems from a criminal referral made last August by FHFA Director Bill Pulte, alleging that Cook listed two homes – one in Ann Arbor, Michigan, and another in Atlanta – as her primary residence to obtain more favorable mortgage terms. Cook has denied wrongdoing, arguing the Ann Arbor house has been her main home since 2005 and that the Atlanta condo was mistakenly labeled as a primary residence in a single filing.

Her attorney, Abbe Lowell, said the allegations are unfounded and that the case reflects a "manufactured pretext" by the president.

"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," Lowell said.

The administration is appealing a lower-court ruling that favored Cook, while her legal team says they will continue to contest any new pretext and defend the Fed’s independence.