The Trump administration has resumed efforts to dismiss Federal Reserve governor Lisa Cook, following a recent Supreme Court ruling that allows her to remain in her position during her ongoing legal battle. The court, in a split 5-4 decision made in June, determined Cook could retain her post while she challenges the previous move by President Donald Trump to terminate her appointment over alleged mortgage fraud, which she has consistently denied.

Cook was nominated to the Federal Reserve’s Board of Governors by President Joe Biden. The administration is appealing a lower court’s ruling that favoured Cook, allowing her to contest the dismissal. Chief Justice John Roberts noted in a footnote that Trump is permitted to attempt removal again, provided Cook is given appropriate notice and a chance to respond to the allegations.

Following the Supreme Court’s decision, Trump indicated his intention to pursue the matter further, committing to “take appropriate action immediately” against Cook.

Allegations and Responses

This ongoing situation arises from a criminal referral filed in August 2025 by Bill Pulte, director of the Federal Housing Finance Agency. Pulte accused Cook of committing mortgage fraud by listing two properties—one situated in Ann Arbor, Michigan, and another in Atlanta—as her primary residence. The designation of a property as a primary residence can impact mortgage rates and down payment requirements.

In response to the allegations, Cook has firmly denied any wrongdoing, asserting that her dismissal is based on a “manufactured pretext” due to her refusal to yield to political pressure and her commitment to setting interest rates in a manner favourable to the American public. Her legal counsel, Abbe Lowell, has stated that Cook has predominantly resided at her Ann Arbor property since its purchase in 2005, thus justifying her claim that it is her primary residence.

Cook purchased a condominium in Atlanta a month later, also referring to it as her “primary residence” in a July 2021 refinancing application, although her attorney clarified that an earlier application had classified it as a vacation home. Furthermore, she listed the Atlanta property as a second home in federal filings during her confirmation process to join the Federal Reserve.

Current Developments and Future Implications

This week, Cook received a letter from White House aide Dan Scavino, indicating that Trump is “considering removing” her from her role, emphasising that she has until August 26 to contest this action, in accordance with the Supreme Court’s stipulations regarding notification.

The latest correspondence from the White House largely mirrors the initial claims made a year ago, prompting strong condemnation from Cook’s legal team. In a statement, Lowell reiterated that the allegations were baseless and reiterated Cook’s right to defend her position against what they describe as an attempt to undermine the independence of the Federal Reserve.

As this case progresses, it reopens discussions about the legitimacy of the administration’s motivations for attempting to remove Cook, particularly in light of the Supreme Court’s emphasis on giving her an opportunity to respond to the latest allegations. The situation continues to unfold as both sides prepare for the ensuing legal disputes.

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