Trump Revives Bid to Fire Fed Governor Lisa Cook, Citing Mortgage Fraud Allegations

The Trump administration is escalating its pressure on the Federal Reserve with a renewed effort to remove Governor Lisa Cook. The White House sent a letter dated Aug. 5, 2026, from Deputy Chief of Staff Dan Scavino directing Cook to respond to allegations that she made false statements when obtaining two mortgages in Georgia, or risk being fired.

The letter states that “the president is considering removing you from your position” and gives Cook until Aug. 26 to provide an explanation and supporting evidence, according to copies obtained by the New York Post and USA Today. Scavino wrote that the notice was sent “pursuant to the Supreme Court’s opinion.”

The Supreme Court in June blocked Trump’s initial attempt to fire Cook in a 5-4 ruling, but left the door open for the president to try again if he provided notice and an opportunity to respond. Chief Justice John Roberts wrote in the June 29 decision that “only after Cook has had the opportunity to respond to the charges made against her … may a final decision be made,” as reported by the New York Post.

The allegations stem from criminal referrals made by Federal Housing Finance Agency Director Bill Pulte, a Trump ally, who accused Cook of falsifying bank documents to obtain favorable terms on mortgages before she joined the Fed, according to the New York Post. Cook has denied wrongdoing and has never been charged with a crime.

Cook’s attorney, Abbe Lowell, vowed another court fight. “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 told both the New York Post and USA Today. “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.”

Just days before the White House letter, Cook signaled she could support an interest rate hike if inflation fails to ease, joining a growing number of Fed officials prepared to tighten policy. “I am prepared to act by raising rates, if necessary,” Cook said at an economic luncheon in Anchorage, Alaska, according to the New York Post. “I would support an increase, if it becomes necessary, to bring inflation down. It may not.”

President Trump has repeatedly raged against the Fed for not lowering interest rates more dramatically, according to Politico. The renewed effort to remove Cook is part of a broader battle between the White House and the central bank over monetary policy and Fed independence.

Trump first demanded Cook resign in August 2025 and days later purported to fire her “for cause,” marking the first presidential attempt in the Federal Reserve’s history to remove a sitting governor under the Federal Reserve Act’s removal provision. Cook refused to leave and sued. A federal judge blocked the firing, and the U.S. Court of Appeals for the D.C. Circuit refused to let Trump remove Cook while litigation continued.

The fight reached the Supreme Court, which dealt Trump a setback in June but stopped short of giving Cook an unconditional victory. The court rejected the administration’s sweeping position that a president’s determination of “cause” was beyond meaningful judicial scrutiny, but declined to adopt a categorical rule that alleged misconduct occurring before a governor joined the Fed could never justify removal, the New York Post reported.

The administration has also targeted the Fed through other channels. The Justice Department issued grand-jury subpoenas in January concerning cost overruns involving renovations of Federal Reserve buildings and Powell’s congressional testimony, according to the New York Post. Chief Judge James Boasberg of the U.S. District Court for the District of Columbia quashed the subpoenas in March, finding their dominant purpose was improper political pressure. The investigation was closed later that month without charges.

Former Fed Chair Jerome Powell, who resisted Trump’s demands for lower rates, saw his four-year term expire in May. Kevin Warsh was sworn in as his successor on May 22, the New York Post reported.

The Times Union, citing the Associated Press, reported that the administration’s latest move comes two months after the Supreme Court allowed Cook to retain her job while she fights the effort to terminate her.