Federal Reserve Governor Lisa Cook submitted a written response late Wednesday to renewed White House efforts to terminate her position on the central bank’s governing board, maintaining that the administration lacks legal grounds for her removal.
The Trump administration has pursued removal based on allegations that Cook declared two properties as primary residences in mortgage applications, a claim Cook denies. Trump previously sought to terminate Cook approximately one year ago over the same allegations. The Supreme Court intervened in the earlier dispute, ruling that Cook could retain her position while legal proceedings continued. The justices also determined that Trump retained the option to attempt removal again if he provided formal notice and afforded Cook an opportunity to respond to the charges.
In her response, Cook’s legal representatives stated that any errors in documentation were unintentional and did not constitute fraud. They characterized the primary residence designation as an inadvertent mistake rather than deliberate deception, and noted that Cook had referred to one of the properties as a vacation home in certain documents. Her attorneys argued the Trump administration’s actions were designed to pressure the Federal Reserve into policy changes rather than address legitimate concerns about mortgage documentation.
The Trump administration has alleged that Cook improperly sought to obtain lower mortgage rates or down payments by misclassifying property designations. Cook contended that any such errors did not warrant termination from her Federal Reserve position.
If Trump succeeds in removing Cook from the board, his appointees would constitute a majority among the Fed’s governors. Trump has previously criticized the Federal Reserve for maintaining higher interest rates than he preferred and has advocated for faster reductions in the central bank’s benchmark rate.
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