Trump again tries to fire Fed Governor Lisa Cook

U.S. President Donald Trump has resumed his attempt to remove Federal Reserve Board Governor Lisa Cook from her position, just weeks after the Supreme Court blocked her dismissal.

This week, the White House sent Cook a letter informing her that the president is considering firing her. The official was asked to provide a written response by the end of August to allegations related to mortgage loan arrangements.

The grievances against Cook first emerged back in 2025. The head of the Federal Housing Finance Agency, Bill Pulte, claimed that in 2021 she may have listed two different properties as her primary residence when applying for mortgages. According to the Trump administration, such actions could have allowed her to secure more favorable loan terms.

Cook herself denies the allegations. Her attorney Abbe Lowell stated that the White House's claims remain just as unfounded as they were a year ago, when Trump first attempted to remove her from office.

In August 2025, Trump announced Cook's dismissal, but she refused to step down and went to court. The dispute reached the U.S. Supreme Court.

On June 29, 2026, the Supreme Court, by a five-to-four majority vote, declined to allow the administration to immediately fire Cook. The court upheld the injunction preventing her removal while the case continues to be heard.

The justices pointed to the special status of the Federal Reserve System and the statutory guarantees of independence for its leadership. Members of the Board of Governors are appointed for long terms and may be removed by the president only on grounds prescribed by law.

The White House's new attempt differs from the previous one in that the administration is now giving Cook the opportunity to formally respond to the accusations before a possible dismissal decision. This could serve as a basis for a new stage of the legal dispute.

Lisa Cook has been a member of the Fed Board of Governors since May 2022. In 2023, she was reappointed for a full term ending January 31, 2038.

The conflict is significant not just for Cook herself. Its outcome could define the limits of the president's authority over Federal Reserve officials and the degree of political independence of the American central bank.

The Fed decides on the key interest rate and U.S. monetary policy, so any change in the composition of its leadership potentially affects financial market expectations, the dollar exchange rate, and the cost of borrowing.

For now, Cook continues to perform her duties as a member of the Fed Board of Governors. The White House letter itself does not mean she is fired, and the final development of the conflict is likely to depend once again on judicial decisions.

Based on materials from: The Wall Street Journal, U.S. Supreme Court, U.S. Federal Reserve