Lawyer for Lisa Cook pushes back against Trump, says mortgage fraud allegations are baseless
ManagementRegulation
The lawyer for Federal Reserve Governor Lisa Cook has responded to President Donald Trump's latest attempt to remove her from office, asserting that allegations of mortgage fraud are baseless and do not meet the legal standard for removing a Fed governor. Attorney Abbe Lowell sent a five-page letter to the White House on Wednesday, ahead of a deadline set by Trump aide Dan Scavino for Cook to address claims that she may have provided false information on at least one home loan application. The dispute marks a new round in Trump's efforts to oust Cook, who was appointed during the administration of former President Joe Biden, amid pressure on the Fed to cut interest rates significantly. Trump first attempted to remove her in late August 2025, after Federal Housing Finance Agency Director Bill Pulte referred the matter to the Justice Department for potential prosecution, alleging that Cook had listed two properties as her primary residence at the same time. However, the U.S. Supreme Court ruled in late June 2026 to block Trump from firing her. The ruling, though, left the door open for a new attempt if there were sufficient legal grounds. Lowell argued that the conduct cited by the administration does not demonstrate intentional wrongdoing and does not constitute cause under the Federal Reserve Act, noting that government officials, including Treasury Secretary Scott Bessent and Deputy Attorney General Todd Blanche, have also listed multiple properties as primary residences. The dispute is being closely watched as a potential major test of the limits of presidential power to remove Fed governors and the independence of the central bank.
