WASHINGTON: Federal Reserve Gov. Lisa Cook has rejected renewed mortgage fraud allegations from President Donald Trump’s administration, saying the claims are “unfounded and untrue” as Trump again considers removing her from the central bank’s governing board over alleged errors in mortgage documents.
Cook’s lawyers submitted their response to the White House on Wednesday, Aug. 26, arguing that she has never committed mortgage fraud or intentionally misled lenders. They said there is no legal basis under federal law to remove her from the Federal Reserve Board.
The dispute began more than a year ago when Federal Housing Finance Agency Director William Pulte accused Cook of providing conflicting information about the primary residence status of properties in Michigan and Georgia.
The administration has argued that the alleged statements could have helped her obtain more favorable mortgage terms.
Trump first attempted to remove Cook in 2025 over the allegations. Cook challenged the move in court, arguing that the mortgage claims were being used as a reason to remove her because of policy differences and to weaken the Federal Reserve’s independence.
Cook’s lawyers also argued that mistakes in mortgage paperwork do not automatically establish legal cause for removing a Federal Reserve governor.
The Supreme Court became involved in the dispute earlier this year. In a 5-4 decision in June, the court blocked Trump’s initial effort to remove Cook, ruling that she was entitled to notice and an opportunity to respond before being dismissed.
The Supreme Court did not establish a precise standard for what conduct would satisfy that requirement, leaving the legal issue open.
The renewed dispute has raised concerns about the independence of the Federal Reserve, which is designed to make monetary policy without direct political control.
