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President Donald Trump has restarted his effort to remove Federal Reserve Governor Lisa Cook, reopening an unprecedented clash over the independence of the nation’s central bank just weeks after the Supreme Court blocked his initial attempt.
The White House notified Cook this week that Trump is considering firing her over allegations that she improperly claimed two homes as primary residences to obtain more favorable mortgage terms. Cook has denied wrongdoing, and the allegations remain unproven.
The letter, made public Friday, gives Cook 21 days to respond and directs her to submit evidence or arguments to the White House by Aug. 26.
The renewed effort follows a June Supreme Court ruling that said Cook was entitled to notice of the allegations and an opportunity to respond before Trump could attempt to remove her. The court’s decision marked a significant limit on the president’s ability to remove members of the Federal Reserve Board, an institution Congress created to operate independently of presidential control.
Chief Justice John G. Roberts Jr., writing for the majority, emphasized the Fed’s unique status as an independent agency and rejected the idea that the president could remove a Federal Reserve governor without notice or judicial review.
Trump nevertheless signaled after the ruling that he intended to revive his effort.
Trump renews unprecedented Fed fight
Trump is the first president in the Federal Reserve’s 112-year history to attempt to fire a sitting member of its Board of Governors.
The president first targeted Cook last August, accusing her of mortgage fraud and arguing that the allegations provided grounds for her removal. Cook rejected the claims and has continued to serve on the board.
Cook was appointed to the Federal Reserve by President Joe Biden in 2022 and renominated in 2023 to a 14-year term. She is the first Black woman to serve on the Fed’s Board of Governors.
Her attorney, Abbe Lowell, called the allegations baseless and accused Trump of continuing an effort to weaken the central bank’s independence.
“No matter what President Trump tries to do next,” Lowell said, there is no valid cause for removing Cook under the facts and Supreme Court precedent.
A Federal Reserve spokesperson declined to comment.
Trump has repeatedly pressured the Fed
The fight over Cook comes amid a broader campaign by Trump to exert pressure on the Federal Reserve and push policymakers toward lower interest rates.
Recent presidents have generally avoided directly challenging the Fed’s independence over monetary policy. Trump, however, has repeatedly criticized the central bank and Chair Jerome H. Powell for keeping interest rates higher than he wants.
Trump also encouraged a Justice Department investigation into Powell over renovations to the Federal Reserve’s Washington headquarters. That investigation was later dropped following bipartisan congressional opposition and criticism from a federal judge who characterized the probe as an abuse of prosecutorial power.
Trump’s attempt to remove Cook has therefore become part of a larger debate over whether the president can exert greater control over an institution whose independence is intended to insulate interest-rate decisions from political pressure.
Supreme Court puts limits on removal power
The Supreme Court’s June ruling did not permanently resolve whether Trump can ultimately remove Cook. Instead, it established that Cook must receive notice of the allegations and an opportunity to respond before the president can proceed.
The White House letter cites that ruling as the basis for its renewed process.
Roberts warned that allowing the president to remove a Federal Reserve governor without procedural protections could fundamentally alter the relationship between the White House and the central bank.
The chief justice wrote that such an interpretation would allow a president to remove a Federal Reserve board member “at any time, for any reason,” without notice or meaningful judicial review.
The decision also suggested that any fundamental change to the Fed’s independent status would have to come from Congress rather than unilateral presidential action.
Cook now faces a new deadline to defend her position. Her response could determine whether Trump moves forward with another attempt to remove her — setting up a potentially consequential new legal battle over presidential power and the independence of the Federal Reserve.
