Fed governor Lisa Cook Defends Against Trump Dismissal Attempt amid Fraud Allegations
WASHINGTON – Federal Reserve Governor Lisa Cook is actively defending herself against President Donald Trump’s efforts to remove her from office, responding to accusations of false statements made in connection with real estate loans. Cook, in a recent court filing, asserts that any discrepancies in her mortgage disclosures were known during her 2022 confirmation process and therefore do not constitute grounds for dismissal.The dispute centers on cook’s reporting of three properties – located in Michigan, georgia, and Massachusetts – on various Federal Reserve forms. She initially identified the Michigan property as her primary residence and the Georgia property as a second home. However, on a separate questionnaire, both the Michigan and Georgia properties were listed as “current places of residence.” Trump and William Pulte,director of the Federal Housing Finance agency appointed by Trump,allege Cook falsely claimed all three properties as her primary residence on mortgage applications,potentially to secure lower interest rates,characterizing this as fraud.
Cook preemptively filed a lawsuit to block what she calls an unprecedented attempt to remove her from her position. Following a two-hour court hearing last week, Federal District judge Jia Cobb requested further clarification from Cook by Tuesday regarding the legality of her potential dismissal. Cook has now submitted that detailed response.
The case has raised concerns about the independence of the Federal Reserve, prompting warnings from European Central Bank President Christine Lagarde, who stated that removing cook or Fed Chair Jerome Powell would pose a “very serious danger to the US economy and the global economy.” No U.S. President has ever dismissed a member of the Federal Reserve Board of Governors. Current law allows for removal only “for cause,” a term not specifically defined. Trump filling a fourth seat on the seven-member board would significantly alter the composition of the Fed. The legal battle is expected to ultimately be decided by the Supreme Court. Cook is the first Black woman to serve as a Fed governor.
