Trump renews bid to fire Fed governor Lisa Cook despite supreme court ruling
Guardian AU Business
β’Fri, 07 Aug 2026 18:47:25 GMT
π° What Happened
Donald Trump is again attempting to remove US Federal Reserve governor Lisa Cook over allegations of mortgage fraud, despite a June Supreme Court ruling that upheld the central bank's independence. Cook reportedly received a White House letter this week, framed in accordance with the court's ruling, saying Trump was considering removing her and requesting a written response within three weeks. Her lawyer, Abbe Lowell, called the allegations as baseless now as when they were first made.
π The Backstory
Trump first moved against Cook last summer over the same mortgage-fraud claims. The Supreme Court ruled 5-4 in June that Cook was entitled to stay on while she fights the allegations, finding Trump failed to afford her the procedural protections required by statute. The renewed effort signals the White House is pursuing new steps under the court's framework rather than abandoning its push to reshape the Fed.
π― Why It Matters
The move continues a sustained effort by the Trump administration to assert control over the Federal Reserve and install governors aligned with its interests, which critics warn threatens the central bank's political independence. The case tests the boundaries of presidential power over the Fed established by the Supreme Court ruling. It is significant for monetary policy and for confidence in the independence of US economic institutions.
Donald Trump is again attempting to remove US Federal Reserve governor Lisa Cook over allegations of mortgage fraud, despite a June Supreme Court ruling that upheld the central bank's independence. Cook reportedly received a White House letter this week, framed in accordance with the court's ruling, saying Trump was considering removing her and requesting a written response within three weeks. Her lawyer, Abbe Lowell, called the allegations as baseless now as when they were first made.
Trump first moved against Cook last summer over the same mortgage-fraud claims. The Supreme Court ruled 5-4 in June that Cook was entitled to stay on while she fights the allegations, finding Trump failed to afford her the procedural protections required by statute. The renewed effort signals the White House is pursuing new steps under the court's framework rather than abandoning its push to reshape the Fed.
The move continues a sustained effort by the Trump administration to assert control over the Federal Reserve and install governors aligned with its interests, which critics warn threatens the central bank's political independence. The case tests the boundaries of presidential power over the Fed established by the Supreme Court ruling. It is significant for monetary policy and for confidence in the independence of US economic institutions.