Lawyer for Fed’s Cook, targeted by Trump, says there is no grounds for dismissal

Federal Reserve Governor Lisa Cook's legal representative has refuted President Donald Trump's claims of mortgage fraud that allegedly justify her dismissal. The lawyer, Abbe David Lowell, asserts there is no legal basis for removing Cook from the Federal Reserve Board, emphasizing that she has never engaged in mortgage fraud or any intentional wrongdoing.

The dispute dates back over a year, with Trump persistently attempting to remove Cook as part of a broader effort to undermine the independence of the U.S. central bank, a move not seen since the Fed's inception over a century ago. The allegations against Cook, the first Black woman to serve as a Fed governor, were first made last August by Federal Housing Finance Agency Director William Pulte and subsequently endorsed by Trump on social media.

Cook has consistently denied any wrongdoing, stating the allegations are a pretext to remove her due to disagreements over monetary policy. The Supreme Court recently ruled in June that Fed officials cannot be fired arbitrarily by a president, leaving open the possibility that any wrongdoing could serve as grounds for termination, provided Cook had the opportunity to defend herself.

The White House recently informed Cook via letter that Trump is considering her removal due to concerns about false statements on mortgage agreements, giving her until August 26 to respond. This deadline precedes Fed Chair Kevin Warsh's scheduled address to global central bankers and economists in Jackson Hole, Wyoming, where the potential impact on the central bank's independence would be a key concern.