Trump renews bid to fire Fed governor Lisa Cook despite supreme court ruling | Federal Reserve
US politics | The Guardian — 2026-08-07 13:47:00 — www.theguardian.com
Donald Trump Renews Effort to Remove Fed Governor Lisa Cook, Repeating Disputed Allegations
Donald Trump is once again seeking to remove US Federal Reserve governor Lisa Cook, reviving allegations of mortgage fraud against her despite a recent Supreme Court decision that upheld the central bank’s independence and Cook’s right to remain in her position while contesting the charges.
According to reports, Cook received a letter from the White House this week indicating that Trump is “considering removing” her from her Fed post over the same mortgage fraud claims he raised last summer. The letter, first reported by ABC News, accused Cook of falling “well short of the standard” required of a sitting Fed governor and requested a written response to the allegations within three weeks.
The Supreme Court ruled 5-4 in June that Cook was entitled to stay on as Fed governor while she fights the president’s allegations, stating in its majority opinion that Trump “failed to afford Cook the procedural protections to which she was entitled by statute.” The justices noted, “Without such protections, she could not properly dispute the charges the president laid against her.”
Trump’s Allegations and Attacks on the Fed
Trump’s drive to oust Cook began last August, when he abruptly fired her in what was widely seen as an unprecedented attack on the central bank’s independence. The White House accused Cook of wrongly designating two separate properties in Georgia and Michigan as her primary residence and failing to report rental income on her Atlanta property for two years. Cook has denied the allegations, describing them as “inadvertent” paperwork errors, and has sued the Trump administration for firing her without cause or proper procedure. Her legal team has argued that the administration is “cherrypicking” facts to support its claims.
Cook’s firing and ongoing legal battles have coincided with Trump’s repeated attacks on the Federal Reserve for not lowering interest rates. Cook, along with then Fed chair Jerome Powell, supported the central bank’s decision not to lower rates, drawing Trump’s ire. Trump disparaged Powell, calling him “too stupid and too political,” and initiated a Justice Department investigation into Powell’s renovations of the Fed’s headquarters, an inquiry that has since been dropped.
Fact-Check and Legal Context
The Supreme Court’s ruling made clear that Trump’s attempt to remove Cook did not follow the required legal procedures, and that Cook is entitled to due process before any removal can take place. Cook’s attorney, Abbe D Lowell, responded to the latest White House letter by calling the allegations “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 added, “No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent – there is no valid cause for removing Governor Cook.”
Cook, appointed by Joe Biden in 2022 to a 14-year term, is the first Black woman to serve as a Fed governor. Her career includes service on Barack Obama’s council of economic advisers and teaching positions at Harvard and Stanford.
Conclusion
Trump’s renewed effort to remove Lisa Cook from the Federal Reserve board continues his pattern of attacking the central bank’s independence and making allegations that have been repeatedly challenged and, so far, rejected by the courts. The Supreme Court’s recent decision underscores the importance of due process and the legal protections afforded to Fed governors, even in the face of presidential opposition. As the legal and political battle continues, the independence of the Federal Reserve remains a central issue.
Source: https://www.theguardian.com/business/2026/aug/07/trump-lisa-cook-fed-firing-scotus-ruling