White House Reopens Push to Remove Fed Governor Lisa Cook

Overview

• The White House sent a formal letter signed by Dan Scavino telling Governor Lisa Cook the president is considering her removal and giving her roughly three weeks to respond to detailed mortgage-related allegations.
• The renewed move follows a narrow June Supreme Court decision that blocked an earlier removal attempt and said Cook must receive procedural protections while lower courts resolve the facts.
• The letter accuses Cook of falsifying primary-residence claims for properties in Michigan and Georgia to obtain better mortgage terms and alleges conduct that the White House says could carry heavy criminal penalties.
• Cook and her lawyer Abbe D. Lowell have rejected the allegations as baseless and said they will contest any removal in court to preserve her seat and the Fed’s independence.
• Legal scholars and market watchers warn a successful removal would set a new precedent for presidential control over Fed personnel and could shift the central bank’s policy direction by enabling the president to replace governors with officials favoring lower interest rates.