Trump Launches Second Bid to Remove Fed Governor Lisa Cook After Court Setback

A New Push to Oust a Federal Reserve Governor

The White House isn't giving up. Less than six weeks after the Supreme Court blocked President Donald Trump's first attempt to remove Federal Reserve Governor Lisa Cook, the administration has formally restarted the process — this time trying to follow the legal roadmap the justices laid out. Trump is restarting his effort to remove Cook from the Federal Reserve Board, about a month after he was blocked from doing so by the Supreme Court.

In a letter obtained by CBS News, dated August 5, White House deputy chief of staff Dan Scavino laid out the allegations against Cook and set an August 26 deadline for her to provide a response to the claims. The letter states that the president is "considering removing" Cook from her position on the Board of Governors of the Federal Reserve, citing "sufficient reason to believe that you made false statements on one or more mortgage agreements."

What the Mortgage Fraud Allegations Actually Say

Trump has said he is firing Cook over allegations raised by one of his appointees that she committed mortgage fraud related to two properties she purchased in Ann Arbor, Michigan, and Atlanta in 2021, before she joined the Fed. Cook is accused of saying the properties were "primary residences," which could have resulted in lower down payments and mortgage rates than if either was designated a second home or investment property.

Trump appears to have formally initiated the process to remove Cook for "gross negligence" based on the allegations of mortgage fraud, which remain untested in court. Cook has denied any wrongdoing, and her legal team has called the charges "manufactured." The White House letter argues that the allegations "reflect on your honesty, trustworthiness, and competence to perform the duties of the office you currently hold."

What the Supreme Court Actually Said

The Supreme Court's June 29 ruling was a significant, if narrow, win for Cook — but it left the door open for exactly what is happening now. The Court ruled that the president's attempt to remove Governor Cook was invalid because the president did not provide her notice of the reason for removal and an opportunity to be heard, which is required by the Federal Reserve Act. In other words, the Court didn't say Trump could never fire her — it said he hadn't followed the correct procedure.

In a 5-4 decision, the Supreme Court denied the government's application to stay a D.C. district court injunction blocking the president from firing Cook. The Court warned that accepting the government's arguments "would in effect transform the Federal Reserve's for-cause protection into at-will employment." The opinion, however, leaves open the possibility of dismissing her in the future, as the Court did not rule on whether Trump will ultimately have the power to fire Cook or any other member of the Fed.

Why This Fight Has Enormous Stakes

Cook was confirmed to a full 14-year term on the Federal Reserve Board, commencing in 2024 and expiring in 2038. It is the first time a president has attempted to fire a Fed governor since Congress established the central bank in 1913. That historical fact alone underscores how unprecedented this confrontation is — and how much is riding on its outcome for the independence of an institution that controls interest rates for the entire U.S. economy.

Cook's attorneys are not backing down. Attorneys Abbe Lowell and Norm Eisen vowed to "challenge this latest pretext and preserve her position and the historic role of the Fed." With the August 26 response deadline now set, a new legal battle appears virtually certain. The core question — whether a president can weaponize a "for cause" standard to gain political leverage over the nation's central bank — remains unanswered, and the courts will almost certainly have to settle it once and for all.