Lisa Cook Hits Back at Trump’s Latest Attempt to Oust Her as Fed Governor
NYT > U.S. > Politics — 2026-08-26 20:53:00 — www.nytimes.com
Trump’s Renewed Effort to Remove Fed Governor Lisa D. Cook Draws Scrutiny Over Unproven Allegations
President Trump has pressed forward with efforts to oust Federal Reserve Governor Lisa D. Cook, alleging that she committed mortgage fraud related to her 2021 purchase of a condominium in Atlanta. Trump’s administration claims Cook listed the Atlanta condo as a “primary” residence on at least one mortgage document, despite never living there, and suggests this could constitute a crime or, at minimum, gross negligence.
Trump’s Allegations and the Response
The White House, in a letter signed by deputy chief of staff Dan Scavino, accused Cook of potentially acquiring mortgages that did not meet certain lending requirements and possibly receiving favorable loan terms under fraudulent circumstances. The letter asserted, “a jury could find that you intended to defraud these institutions for your own benefit, but at a minimum, this conduct was grossly negligent and demonstrates that you are unfit for the office in which you serve as a controlling member of the Federal Reserve.”
Cook’s lawyer, Abbe David Lowell, strongly refuted the allegations, emphasizing that Cook had not committed a crime nor been charged with one. Lowell explained that the designation of the Atlanta condo as a primary residence was an “entirely inadvertent oversight,” not fraud, and that Cook had previously identified the property as a vacation home in the mortgage process. He also noted that Cook did not receive any preferential loan rate due to the error and was not yet nominated to the Fed board at the time of the purchase.
Comparisons and Double Standards
Lowell pointed out that Trump and some of his advisers had made similar designations on their own mortgage documents. Citing Bloomberg reporting, he highlighted that Treasury Secretary Scott Bessent had acquired mortgages on two homes in 2007, both designated as “primary” residences. “President Trump has neither fired the secretary nor asked him to resign, seemingly understanding that Secretary Bessent’s actions do not disqualify him or cast doubt on his ‘competence and trustworthiness as a financial regulator,’” Lowell wrote.
Legal and Institutional Ramifications
Trump’s push to remove Cook follows a Supreme Court ruling that she should have been given a formal opportunity to contest the accusations. While the Court allowed her to continue serving, it left open the possibility for the president to try again, provided due process is granted. The case has raised alarms among legal experts and former officials, who warn that weakening the Fed’s removal protections could undermine its independence and subject it to political pressure.
Trump’s attacks on Cook are not isolated. He has repeatedly berated the central bank and its then-chair Jerome H. Powell, including personal insults and threats to fire him, primarily for not lowering interest rates as much as he wanted. Trump argued that higher rates were increasing the country’s debt payments and stifling economic growth.
Conclusion
President Trump’s ongoing campaign to remove Lisa D. Cook from the Federal Reserve board has been marked by unproven allegations and accusations that critics say could threaten the independence of the central bank. The episode highlights a pattern of Trump targeting Fed officials over policy disagreements, raising concerns about the politicization of institutions designed to operate independently of the White House. As the legal process continues, the outcome will have significant implications for the future of the Federal Reserve and its ability to function free from political interference.
Source: https://www.nytimes.com/2026/08/26/business/trump-lisa-cook-fed.html