The Trump administration has renewed its effort to fire Federal Reserve Governor Lisa Cook, sending her a letter on August 5, 2026, that demands a response to unproven mortgage fraud allegations within three weeks. This move follows a June 2026 Supreme Court ruling that blocked her initial ouster on procedural grounds but left open a path for removal with proper notice. Cook's legal team has dismissed the allegations as a baseless pretext aimed at undermining the central bank's independence.
Lisa Cook removal attempt
- ▪Federal Reserve Governor Lisa Cook's attorney, Abbe Lowell, called the mortgage fraud allegations baseless and stated that her legal team will challenge the administration's latest attempt to remove her.
- ▪The White House letter, signed by Deputy Chief of Staff Dan Scavino, gave Federal Reserve Governor Lisa Cook until August 26, 2026, to provide a written response to unproven mortgage fraud allegations.
- ▪On August 5, 2026, the White House sent a letter to Federal Reserve Governor Lisa Cook stating that President Donald Trump is considering removing her from her position.
Supreme Court procedural ruling
- ▪In June 2026, the U.S. Supreme Court ruled 5-4 that Federal Reserve Governor Lisa Cook was entitled to remain in her post while her lawsuit challenging her initial firing proceeds.
- ▪Chief Justice John Roberts noted in a footnote that President Donald Trump is not forbidden from attempting to fire Federal Reserve Governor Lisa Cook again, provided she receives proper notice and an opportunity to contest the charges.
- ▪Chief Justice John Roberts wrote in the June 2026 majority opinion that President Donald Trump failed to afford Federal Reserve Governor Lisa Cook the statutory procedural protections required to dispute the charges.
Mortgage fraud allegations
- ▪The effort to fire Federal Reserve Governor Lisa Cook stems from an August 2025 criminal referral by Federal Housing Finance Agency Director Bill Pulte, accusing her of declaring properties in both Michigan and Georgia as her primary residence.
- ▪Federal Reserve Governor Lisa Cook's legal team maintained that the mortgage designations were inadvertent paperwork errors, noting she declared the Atlanta property as a vacation home in other submissions and federal filings.
- ▪A local tax authority in Michigan reported that Federal Reserve Governor Lisa Cook did not break rules regarding tax breaks on her home in Ann Arbor, Michigan.
Federal Reserve independence
- ▪Federal Reserve Governor Lisa Cook argued that President Donald Trump's attempts to fire her are a pretext driven by her refusal to bow to political pressure regarding interest rate decisions.
- ▪No other U.S. president since the Federal Reserve's founding in 1913 has attempted to oust a sitting Federal Reserve governor, who by law can only be removed by the president 'for cause.'
- ▪In May 2026, Kevin Warsh took over as Federal Reserve Chair, succeeding Jerome Powell, whom President Donald Trump had also repeatedly threatened to fire over interest rate policies.
Post-ruling executive actions
- ▪On August 5, 2026, the same day the White House letter was dated, Federal Reserve Governor Lisa Cook spoke at an economic luncheon in Alaska, stating that inflation remains too high and she is prepared to raise interest rates.
- ▪The renewed effort to fire Federal Reserve Governor Lisa Cook is the second time in August 2026 that President Donald Trump has restarted an initiative previously blocked by the Supreme Court, following a new order attempting to limit birthright citizenship.
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