Fed’s Cook rejects Trump mortgage fraud claims

Federal Reserve Governor Lisa Cook firmly denied renewed claims of mortgage fraud made by President Donald Trump on Wednesday. The allegations were sent to Cook by the White House in a letter dated August 5, stating that she has no legal basis to be removed from the US central bank's board. This is the second attempt by Trump to oust Cook, following a June Supreme Court ruling that blocked his initial effort, which found him in violation of proper procedures for dismissal.

No president in the Federal Reserve's 113-year history has successfully removed a sitting governor. Cook, the first Black woman to hold the position, has consistently denied any mortgage fraud or intentional wrongdoing and maintains there is no justifiable reason for her removal. The letter also points out that several of Trump's cabinet officials also signed similar mortgage paperwork tied to her case.

Trump has spearheaded an unprecedented effort to undermine the Federal Reserve's independence during his second term, initiating a criminal investigation against former chair Jerome Powell and attempting to dismiss Cook. The Supreme Court's June ruling emphasized the importance of the Fed's autonomy but did not address the allegations.

Trump expressed anger over the ruling on social media, vowing to take "appropriate action immediately" against Cook.