Trump administration renews push to remove Fed governor Cook

The White House sent Federal Reserve Governor Lisa Cook a letter this week giving her three weeks to respond to unproven mortgage fraud allegations, reviving President Donald Trump's effort to remove her from the central bank's board. The letter, signed by White House Deputy Chief of Staff Dan Scavino, said Trump is considering firing Cook and warned the alleged offense carries a penalty of up to 30 years in prison.

Federal Reserve governors serve 14-year terms and can only be removed by the president "for cause," a legal protection meant to keep the central bank's interest-rate decisions insulated from political pressure. No other president has attempted to remove a Fed governor since the bank's founding in 1913. Trump first raised the mortgage fraud allegations against Cook, who was nominated to the board in 2022 by President Joe Biden, in August 2025.

The allegations center on claims that Cook listed homes in Georgia and Michigan as her primary residence, potentially qualifying her for favorable mortgage rates, though no evidence has surfaced that she deceived lenders. The Supreme Court blocked an earlier attempt by Trump to fire Cook in June. Cook's attorney, Abbe D. Lowell, said in a statement there is "no valid cause" for her removal and that her legal team will challenge the latest action.

The renewed pressure comes as Trump has repeatedly pushed the Fed to cut interest rates, which have remained elevated to combat inflation. Fed Chair Kevin Warsh, a Trump appointee who took over in May, has not delivered the rate cuts Trump has sought. Cook said at an economic event this week that inflation remains "too high" and that she is prepared to support further rate increases.

Read the full story at Al Jazeera.