Trump renews threat to oust Fed Governor Lisa Cook 

The White House is escalating its ongoing battle with Federal Reserve Gov. Lisa Cook, warning in a letter this week that President Donald Trump still wants to remove her from office despite the roadblocks he's encountered since first attempting to do so last summer.

Although this particular battle is about whether the president can unilaterally remove an official at an independent agency, it has sparked a larger debate over the Fed's ability to continue operating independently — and what could happen to the global economy if that independence is threatened.

What the White House said: The letter dated Aug. 5 was sent by Daniel Scavino, assistant to the president, deputy chief of staff and director of the office of presidential personnel.

Citing a June U.S. Supreme Court opinion, which denied Trump the ability to immediately remove Cook from her position, the letter sought to officially notify Cook of the mortgage fraud allegations made against her and gave her 21 days to respond.

Trump "is considering removing you from your position" amid "sufficient reason to believe that you made false statements on one or more mortgage agreements," the letter stated. It instructed Cook to "provide a written response with your explanation for your false statements and accompanying evidence" by Aug. 26.

What Cook had to say: Abbe Lowell, an attorney representing Cook, told The Associated Press that the White House's allegations "are as baseless now as they were a year ago" when Trump first moved to fire Cook.

"No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent — there is no valid cause for removing Governor Cook," Lowell said, adding that Cook's legal team intends to challenge the president's "latest pretext."

Real Estate News has reached out to Cook's legal team for comment.

How we got here: The controversy began in August 2025 when Federal Housing Finance Agency Director Bill Pulte brought mortgage fraud allegations against Cook, referring the matter to the DOJ.

Though Cook has denied any wrongdoing, the allegations led Trump to call for her resignation. When she refused, Trump announced on Aug. 25 that he was firing her.

But it wasn't that simple. Cook quickly filed a lawsuit challenging her termination, and in early September, a U.S. district judge blocked the president from immediately removing her from office while her lawsuit moved forward. The president later elevated the issue to the Supreme Court.

A legal win, followed by a new deadline: In its June 29 opinion, the Supreme Court affirmed the lower court's ruling barring the president from immediately removing Cook. But it also provided an opening for Trump to try again, noting that Cook was not given time to respond to the allegations because of the speed with which Trump announced her termination on social media.

"At minimum, Cook was entitled to some explanation of the evidence at issue, some avenue for a response, and a deadline by which a response would be due," the opinion said, adding, "Only after Cook has had the opportunity to respond to the charges made against her may a final decision be made."

Scavino referenced that part of the opinion in the Aug. 5 letter, writing that the court "determined that you are entitled to notice of the allegations against you and an opportunity to respond prior to your removal."

"This is your opportunity to respond," the letter added.