Trump Renews Efforts to Remove Fed Governor Lisa Cook
The US President is renewing efforts to fire Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. Previous attempts were blocked by the Supreme Court, which noted that any new move must strictly follow due process.
The US President is renewing his efforts to fire Federal Reserve Governor Lisa Cook — efforts that were blocked in June by the Supreme Court, as reported by CNBC. A White House aide to the President, Dan Scavino, wrote to Cook this week stating there is "sufficient basis to believe" that she made "false statements in one or more mortgage agreements." These are the same accusations that Donald Trump raised when he first fired Cook from the central bank last year.
Cook denied the allegations and filed a lawsuit against her dismissal. A federal court prevented Trump from firing Cook as long as her lawsuit is pending. At the end of June, the Supreme Court, by a vote of five to four, upheld this decision. However, Chief Justice John Roberts noted that the court's decision does not prevent Trump from trying again to remove Cook due to the allegations of mortgage fraud. According to him, any new attempt to fire Cook would require additional steps to protect her constitutional rights to due process.
Scavino, Deputy White House Chief of Staff and Director of the Presidential Personnel Office, wrote that he is sending the letter to Cook "in accordance with the Supreme Court's opinion." He ordered her to provide an explanation for her "false statements" within three weeks.
Abbe Lowell, Cook's attorney, told CNBC that the allegations are "as baseless now as they were a year ago, when President Trump tried to remove Cook and undermine the independence of the Federal Reserve."
"No matter what Trump tries to do next, one thing is clear based on the facts and Supreme Court precedents — there is no valid basis for Cook's removal. As we have done in the past, we will challenge this latest claim and protect her position and the historic status of the Fed," Lowell stated.
In June, Cook revealed that she had spent about $1.2 million on legal services while her case was being heard by the Supreme Court. This is in addition to security expenses that brought the total amount to more than $1.3 million.
