Trump Revives Bid to Fire Fed Governor Lisa Cook Amid Supreme Court Confusion
President Trump has launched a second attempt to remove Federal Reserve Governor Lisa Cook, sending her a letter demanding a response to mortgage fraud allegations by Wednesday. This move follows a recent Supreme Court ruling that blocked a previous removal attempt but failed to clearly define the limits of presidential power over the central bank. Vox argues that the Court’s ambiguous decision, which conflicted with its own 'unitary executive' rulings, has emboldened the White House to bypass due process requirements.
Key points
- Trump sent a letter to Lisa Cook, a Biden appointee, demanding she respond to allegations of mortgage fraud within a short deadline, marking the first step in a second removal attempt.
- The Supreme Court recently ruled against Trump’s first attempt to fire Cook, stating she was entitled to notice and an opportunity to respond, but did not explicitly ban her removal.
- Vox criticizes the Court for issuing an incoherent opinion that failed to reconcile its 'unitary executive' doctrine, which allows firing agency heads, with the Federal Reserve’s unique status.
- Reuters previously found that Cook disclosed one of the properties in question as a vacation home, suggesting the fraud allegations are baseless.
- The conflicting Supreme Court decisions create legal uncertainty regarding whether the President can effectively control the Federal Reserve’s monetary policy.
Background
In early August 2026, Trump initially attempted to remove Cook based on similar mortgage fraud claims. The Supreme Court blocked this move, ruling that Cook must be given notice and a chance to respond before termination. This latest action is a direct response to that ruling, aiming to satisfy the procedural requirements set by the Court while continuing the push for her removal.
Why it matters
The independence of the Federal Reserve is crucial for maintaining stable inflation and economic policy. If the President can remove Fed governors for political reasons, it risks compromising monetary policy for short-term electoral gains, potentially leading to higher inflation and economic turmoil.
What to watch
Cook must respond to the allegations by Wednesday. If the allegations are deemed insufficient, the case will likely return to the courts, where lower judges will have to interpret the conflicting Supreme Court rulings without clear guidance.
Want the full story? Read the original reporting
Read on vox.com