White House Revives Push to Remove Fed's Cook, Testing Central Bank Independence

The White House has formally notified Federal Reserve Governor Lisa Cook that President Donald Trump is "considering removing" her, demanding she answer allegations of making false statements on mortgage applications within three weeks or face termination. The letter, dated Aug. 5, marks the administration’s second attempt to oust Cook after the Supreme Court in June blocked an initial firing in a 5-4 ruling.

Deputy White House Chief of Staff Dan Scavino, who also heads the Office of Presidential Personnel, told Cook in the letter that there is "sufficient reason to believe that you made false statements on one or more mortgage agreements," according to a copy obtained by the New York Post. The letter directs Cook to provide an "explanation for your false statements and accompanying evidence" by Aug. 26, as reported by USA Today.

The allegations stem from criminal referrals made by Federal Housing Finance Agency Director Bill Pulte, a Trump ally, accusing Cook of falsifying bank documents to obtain favorable terms on mortgages before joining the Fed, the New York Post reported. Cook has not been charged with any crime and has denied wrongdoing.

Chief Justice John Roberts, writing for the majority in the June 29 Supreme Court decision, held that Cook was entitled to notice and an opportunity to respond before removal. "Only after Cook has had the opportunity to respond to the charges made against her … may a final decision be made," Roberts wrote. The ruling rejected the administration’s broad argument that a president’s determination of "cause" was beyond meaningful judicial scrutiny, but also declined to adopt a blanket rule that alleged misconduct predating a governor’s appointment could never justify removal.

Cook’s attorney, Abbe Lowell, vowed to challenge the renewed effort. "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 the New York Post. In a separate statement to USA Today, Lowell said, "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."

Lowell added that the legal team would "challenge this latest pretext and preserve her position and the historic role of the Fed."

Cook herself warned Wednesday that she could support an interest rate increase if inflation fails to ease, according to the New York Post. "I am prepared to act by raising rates, if necessary," Cook said at an economic luncheon in Anchorage, Alaska. "I would support an increase, if it becomes necessary, to bring inflation down. It may not."

The renewed push to remove Cook is the latest chapter in a long-running conflict between Trump and the Federal Reserve over monetary policy and central bank independence. Trump first demanded Cook’s resignation in August 2025 and days later purported to fire her "for cause," marking the first presidential attempt in the Fed’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 her while litigation continued.

The broader battle has included Trump’s repeated public attacks on former Fed Chair Jerome Powell for resisting demands for faster and deeper rate cuts. Politico reported that the president has "repeatedly raged against the Fed for not lowering interest rates more dramatically." The administration also turned its attention to cost overruns involving renovations of Federal Reserve buildings. The Justice Department served two grand-jury subpoenas on the Federal Reserve Board in January, but Chief Judge James Boasberg of the U.S. District Court for the District of Columbia quashed them in March, finding that their dominant purpose was improper political pressure or harassment. The investigation was closed without charges in April.

Powell’s four-year term as Fed chair expired in May, and Kevin Warsh was sworn in as his successor on May 22.

The Supreme Court’s June ruling left the door open for the administration to try again, provided it followed due process. Scavino’s letter explicitly states it was sent "pursuant to the Supreme Court’s opinion." With Cook given until Aug. 26 to respond, the next move rests with the White House — and likely with the courts again.