Fed governor Lisa Cook slams Trump’s renewed threat to fire her

Federal Reserve governor Lisa Cook dismissed the Trump administration's renewed threat to remove her from the central bank's governing board, stating there is no legal basis for such an action in a letter on Wednesday. Cook first faced allegations of mortgage fraud a year ago, which she denies, but the Supreme Court ruled she could stay in her position while the case is ongoing.

The court also stated that Trump could attempt to fire her again if he provided proper notice and allowed her to contest the decision. Trump previously accused Cook of misclassifying two homes as primary residences in mortgage applications, potentially allowing her to secure lower interest rates or down payments. Cook clarified that she had referred to one of those homes as a "vacation home" and that any errors were unintentional.

If Trump were to oust Cook, he could appoint a replacement, giving his appointees a majority on the Fed's board. The White House has not provided a specific timeline for Cook to respond, but an aide earlier this month had given her until Wednesday to do so.