The attorney for Federal Reserve Governor Lisa Cook has dismissed claims by Donald Trump's administration that she should be removed from her position, asserting there is no legal basis for dismissal. Abbe David Lowell, Cook's lawyer, submitted a rebuttal letter to the White House on August 5, stating that accusations of mortgage fraud against Cook rely on unproven allegations and have not been adjudicated.
The dispute centers on Cook's residency declarations in mortgage documents, with Trump's administration alleging she misrepresented her primary residence status. Lowell countered that Cook had previously informed a financial institution that one of the disputed properties was a vacation home, and a Michigan tax authority confirmed she did not violate local property tax exemption rules for her declared primary residence.
The White House, in a letter signed by Deputy Chief of Staff Dan Scavino, argued that even without fraud, Cook's incorrect statements could constitute negligence, undermining her credibility as a Fed governor. The administration has been attempting to remove Cook for more than a year, a move unprecedented in the Fed's over century-long history.
Legal protections for Fed officials were reinforced in June when the U.S. Supreme Court ruled 5-4 that central bank governors cannot be dismissed at will by a president. The decision followed a criminal referral by William Pulte, Director of the Federal Housing Finance Agency, who alleged bank fraud against Cook in August 2025. The referral suggested a potential 30-year prison sentence, though no charges have been filed.
Cook's potential removal has drawn attention ahead of Fed Chair Kevin Warsh's scheduled speech at the Jackson Hole Symposium on August 28, where he is expected to address central bank policies before global economists and policymakers. The Federal Reserve Bank of Kansas City hosts the annual event in Wyoming.
