NewsKPBS Public MediaAugust 7, 2026San Diego
President Trump renews effort to remove Federal Reserve Governor Lisa Cook
President Trump has initiated a new attempt to remove Federal Reserve Governor Lisa Cook by demanding she respond to allegations of mortgage fraud. This action follows a June Supreme Court ruling that restricted the President's authority to fire Fed governors to cases involving 'cause.'
Read the full story at KPBS Public MediaWhy It Matters
The outcome of this dispute will determine the extent of presidential authority over the independence of the Federal Reserve and the job security of its board members.
Key Facts
- President Trump is seeking to fire Federal Reserve Governor Lisa Cook.
- The administration alleges Cook made false statements on mortgage applications.
- The allegations were originally raised by William Pulte, who oversees Fannie Mae and Freddie Mac.
- In June, the Supreme Court ruled 5-4 that presidents can only remove Fed governors for 'cause'.
- The Supreme Court previously blocked an earlier attempt by Trump to remove Cook.
- Lower courts must now determine if the current allegations meet the legal standard for 'cause'.
- Jerome Powell's term as Fed Chair expired in May, but he remains on the board.
- Deputy White House Chief of Staff Daniel Scavino sent a formal letter to Cook regarding the allegations this week.
Who's Mentioned
personJerome Powell“Former Fed Chair currently serving on the board”personDaniel Scavino“Deputy White House Chief of Staff who sent the letter”organizationFreddie Mac“Mortgage giant overseen by William Pulte”personLisa Cook“Federal Reserve Governor facing removal”personAbbe Lowell“Attorney for Lisa Cook”personDonald Trump“President initiating the removal effort”personWilliam Pulte“Ally of Trump who raised the allegations”organizationSupreme Court“Judicial body that ruled on removal standards”organizationFannie Mae“Mortgage giant overseen by William Pulte”