Lisa Cook’s Legal Team Rebuffs Trump’s Renewed Push to Oust Fed Governor
Federal Reserve Governor Lisa Cook’s legal counsel has formally rejected the White House’s renewed attempts to remove her, a move that tests the central bank’s independence and carries significant implications for future interest rate policy.
Federal Reserve Governor Lisa Cook’s legal team formally rejected the White House’s renewed efforts to remove her from the central bank on Wednesday. In a five-page letter to White House counsel David Warrington, attorney Abbe Lowell stated that allegations of mortgage fraud against Cook "remain unfounded and untrue."
The defense arrives just before a deadline established by Trump aide Dan Scavino. In an August 5 letter, Scavino claimed there is "sufficient reason to believe that you made false statements on one or more mortgage agreements," citing a criminal referral from Federal Housing Finance Agency Director Bill Pulte.
Lowell argued that attempting to dismiss Cook based on Pulte’s referral "would ignore the facts and the law." He emphasized that the "two acts" cited by the White House do not demonstrate intentional wrongdoing, nor do they constitute "cause" under the Federal Reserve Act.
The letter characterized the issue as an unintentional error made in Cook’s private capacity before she assumed office. "An inadvertent oversight is not fraudulent or criminal," Lowell wrote, adding that the apparent mistake occurred on a form provided by a lender already aware of her other residences.
Lowell further contended that targeting Cook would be highly selective, raising "troubling questions about why President Trump is singling out Governor Cook." He noted that President Trump, Treasury Secretary Scott Bessent and Attorney General Todd Blanche have reportedly listed multiple properties as primary residences in the past.
This legal standoff carries profound implications for financial markets and institutional stability. President Trump, who has publicly advocated for sharply lower interest rates, first moved to dismiss the Biden-appointed governor in late August 2025.
Although the Supreme Court blocked Trump from firing Cook in late June, it left a procedural path for the administration to try again. A successful removal over disputed pre-employment paperwork would set a dangerous precedent for central bank independence.
To bolster the defense, Lowell included a declaration from Suffolk University Law School research professor Kathleen Engel. The White House did not immediately respond to a request for comment on the letter.
