WASHINGTON — President Donald Trump has revived his effort to remove Federal Reserve Governor Lisa Cook, reopening a legal and political fight over the independence of the U.S. central bank less than two months after the Supreme Court blocked his initial attempt to oust her.
The White House notified Cook this week that Trump was considering removing her from the Fed's Board of Governors and gave her 21 days to respond to allegations involving mortgage applications she made before joining the central bank. The administration has accused Cook of improperly listing two properties as primary residences, allegations she has denied.
The renewed action follows a June 29 Supreme Court ruling that allowed Cook to remain in office while the dispute proceeds. The justices said Cook was entitled to notice and an opportunity to respond before any termination, rejecting the administration's effort to remove her without such procedural protections.
The White House's latest move appears designed to address that procedural requirement. Dan Scavino, a White House deputy chief of staff, signed the letter notifying Cook of the administration's consideration of her removal, according to reports on the letter. Cook now has the opportunity to contest the allegations before Trump makes a final decision.
Cook's lawyer has described the mortgage allegations as baseless and politically motivated. Cook has consistently disputed the claims, which concern conduct that predates her appointment to the Federal Reserve Board. There has been no publicly established finding that she committed mortgage fraud.
Trump's renewed effort places the Federal Reserve's statutory independence back at the center of a dispute between the White House and the central bank. Trump has repeatedly criticized the Fed over interest rates and has sought greater influence over monetary policy.
Cook remains a sitting member of the Board of Governors. Federal Reserve records show she continued to participate in central bank policymaking this year, including a July speech on the economic outlook and participation in the Federal Open Market Committee.
The Supreme Court's June decision did not finally resolve whether Trump can remove Cook for cause. The case continues in lower courts, with the administration's latest notice beginning the response process required by the court's ruling. Cook's position will remain contested unless the administration ultimately removes her and the courts determine whether that action is lawful.
