Trump renews effort to fire Fed Governor Lisa Cook over mortgage fraud allegations

Aug 7, 2026

President Donald Trump has renewed his effort to fire Federal Reserve Governor Lisa Cook, directing aide Dan Scavino to send a letter giving her until late August 2026 to respond to mortgage fraud allegations. The move follows a June 2026 Supreme Court ruling that blocked her immediate ouster but left open the option to fire her if due process is provided. Cook's attorney, Abbe Lowell, dismissed the allegations as baseless pretexts aimed at undermining the Federal Reserve's independence.

Trump fires Cook again

▪On August 5, 2026, White House Deputy Chief of Staff Dan Scavino sent a letter to Federal Reserve Governor Lisa Cook stating that President Donald Trump is considering removing her from her position.
▪The renewed effort to remove Federal Reserve Governor Lisa Cook marks the second time in one week in August 2026 that President Donald Trump has restarted an initiative previously blocked by the Supreme Court, following a birthright citizenship order.
▪The White House letter dated August 5, 2026, gave Federal Reserve Governor Lisa Cook until August 26, 2026, to provide a written response and explanation regarding mortgage fraud allegations.

Mortgage fraud allegations

▪The mortgage fraud allegations against Federal Reserve Governor Lisa Cook were originally surfaced in a criminal referral to the Justice Department by Federal Housing Finance Agency Director William Pulte.
▪A local tax authority in Michigan stated that Federal Reserve Governor Lisa Cook did not violate rules regarding tax breaks on a home she declared as her primary residence.
▪The White House letter signed by Dan Scavino alleged that Federal Reserve Governor Lisa Cook made false statements on mortgage agreements, committing actions that could carry a penalty of up to 30 years in prison.

Supreme Court June ruling

▪The Supreme Court's June 2026 ruling did not decide the validity of the mortgage fraud allegations against Federal Reserve Governor Lisa Cook and returned the case to lower courts.
▪Chief Justice John Roberts, joined by Justice Brett Kavanaugh and three liberal justices, authored the majority opinion in the June 2026 Supreme Court ruling, while Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett dissented.
▪In late June 2026, the U.S. Supreme Court ruled 5-4 to uphold a lower court decision blocking President Donald Trump from firing Federal Reserve Governor Lisa Cook while her lawsuit was pending.

Federal Reserve independence threat

▪President Donald Trump's initial attempt to remove Federal Reserve Governor Lisa Cook in 2025 occurred alongside his public pressure on the Federal Reserve to lower interest rates.
▪President Donald Trump previously threatened to fire former Federal Reserve Chair Jerome Powell before appointing Kevin Warsh, who took office as Chair in May 2026.
▪No other United States president since the founding of the Federal Reserve in 1913 has attempted to oust a sitting Federal Reserve governor.

Cook's legal defense strategy

▪Abbe Lowell, attorney for Federal Reserve Governor Lisa Cook, called the mortgage fraud allegations baseless and stated they would legally challenge the removal attempt to preserve her position.
▪Federal Reserve Governor Lisa Cook previously filed a lawsuit challenging her attempted dismissal, arguing the allegations were a pretext to remove her over monetary policy differences.

Presidential due process requirements

▪Chief Justice John Roberts wrote in the June 2026 Supreme Court ruling that any new attempt to fire Federal Reserve Governor Lisa Cook would require additional procedural steps to protect her constitutional due process rights.
▪In September 2025, U.S. District Judge Jia Cobb ruled that President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook without notice or a hearing likely violated her Fifth Amendment due process rights.