Trump Moves Again Against Fed Governor Lisa Cook, Reigniting Independence Debate

U.S. President Donald Trump has renewed his effort to remove Federal Reserve Governor Lisa Cook from office, reopening a legal and political battle that could have far-reaching implications for the independence of the U.S. central bank. The latest move comes just weeks after the U.S. Supreme Court declined to allow the president to dismiss Cook while the dispute continues through the courts.

According to a letter obtained by Reuters and confirmed by multiple U.S. media outlets, the White House informed Cook that the president is once again considering her dismissal and requested a formal written response before making a final decision. The renewed effort centers on allegations that Cook improperly represented her primary residence on mortgage documents several years before joining the Federal Reserve Board. Cook has consistently denied any wrongdoing, describing the accusations as baseless and politically motivated.

The allegations were first raised by Federal Housing Finance Agency Director Bill Pulte, who claimed Cook misrepresented information to obtain more favorable mortgage terms. Cook and her legal team have rejected the accusations, arguing that any discrepancies were unintentional and do not constitute misconduct warranting removal from office.

Cook’s attorney, Abbe Lowell, accused the Trump administration of using the allegations as a pretext to weaken the Federal Reserve’s independence. He said the administration’s actions are aimed at replacing independent policymakers with officials more aligned with the president’s views on monetary policy and interest rates.

The dispute dates back to last year, when Trump announced Cook’s dismissal, making her the first Federal Reserve governor in the institution’s history to face an attempted presidential removal. Cook immediately challenged the decision in court, arguing that the Federal Reserve Act permits governors to be removed only for legitimate cause and not for political disagreements. Lower courts sided with Cook, allowing her to remain in office while litigation proceeds.

In June, the U.S. Supreme Court refused Trump’s emergency request to remove Cook immediately, allowing her to continue serving while broader legal questions surrounding presidential authority over independent agencies are resolved. Although the justices expanded presidential removal powers in other cases, they stopped short of permitting Cook’s dismissal, citing the unique constitutional status and independence of the Federal Reserve.

The latest move has intensified concerns among economists and financial market observers, many of whom warn that political interference in the Federal Reserve could undermine investor confidence and threaten the central bank’s credibility. The Fed has traditionally operated independently from the White House to ensure monetary policy decisions are based on economic conditions rather than political considerations.

The renewed attempt also comes at a sensitive time for the Federal Reserve, with policymakers continuing to grapple with inflation, interest rates and slowing economic growth. Earlier this week, Cook said she would support raising interest rates again if inflation remained persistently above the Fed’s target, underscoring her influential role in shaping U.S. monetary policy.

Legal experts expect any attempt to remove Cook before the courts reach a final decision to trigger another round of litigation, setting the stage for a landmark constitutional ruling on the limits of presidential authority over the nation’s independent financial institutions.