Trump Moves Again to Remove Fed Governor Lisa Cook Over Mortgage Loan Allegations
ManagementMacro Impact 4
President Donald Trump is renewing his effort to remove Federal Reserve Board Governor Lisa Cook from office, with the White House sending a letter dated August 5 giving her 21 days, or until August 26, to respond to allegations that she provided false information on a mortgage loan application. The move comes after the U.S. Supreme Court ruled in June to block the attempt to remove Cook, stating that the president does not have the power to fire a Fed governor without cause or for any reason, but the court did not rule on the mortgage fraud allegations, noting that Trump had not given Cook due process protections. The latest letter says such conduct constitutes gross negligence and shows she is unfit for the position. This marks the first time in the Fed's 111-year history that a president has tried to remove a Fed governor. Cook has consistently denied the allegations and views them as a pretext to remove her because she resisted political pressure.
