Fed governor Lisa Cook: "No legitimate basis for removal" on Trump mortgage claims

Federal Reserve Governor Lisa Cook's lawyers have submitted a case to argue that she cannot be legally removed from her position, as President Trump continues to seek ways to dismiss her. The case gained attention after the Supreme Court ruled against Trump's attempt to fire Cook last year due to alleged mortgage fraud claims over owning two different properties as primary residences.

This new development is a closely watched case that could set the bar for how high the threshold is for a president to fire Federal Reserve governors, thereby impacting the political independence of America's central bank.

Three weeks ago, the White House requested Cook's response to the allegations, which her lawyers submitted and shared with reporters on Wednesday evening. Cook's legal team contends that there is no legitimate basis for her removal from the Fed board, and that the errors were merely an inadvertent oversight. They emphasize her transparency with her lender and note that both Trump himself and five members of his cabinet have also had questionable claims of primary residence on a property in the past.

The White House Deputy Chief of Staff, Dan Scavino, had previously written to Cook earlier this month, citing the mortgage application errors and asking for her defense. Cook's attorney, Abbe David Lowell, explained in his submission that Cook's actions revealed no intentional misconduct and no intent to defraud or mislead. Lowell also pointed out that Cook regularly indicated her primary residence or permanent residence as Michigan and confirmed that her Atlanta property was a second home.

The legal team believes that there is no basis for removing Cook from the Fed board and stresses that the purported errors were an entirely inadvertent oversight. They argue that Cook was fully transparent with her lender and that several other high-profile individuals, including Trump and his cabinet members, had similar claims of primary residence on a property in the past.

As the situation unfolds, it remains to be seen whether Trump will attempt to fire Cook again with a more formal review process and how the courts will respond.