Fed Governor Cook rejects Trump mortgage fraud claims as baseless
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Federal Reserve Governor Lisa Cook's lawyers issued a letter Wednesday rebutting President Donald Trump's mortgage fraud allegations as legally baseless. The letter responds to an August 5 White House warning that Trump was considering firing Cook over alleged false statements on mortgage agreements. Cook's legal team said the attacks are an attempt to force the Federal Reserve to bend to Trump's will.
Key Facts
- Cook's lawyers Abbe David Lowell and Norman Eisen issued the rebuttal letter on Wednesday.
- The White House warned on August 5 that Trump was considering firing Cook over alleged false statements on mortgage agreements.
- In June, the Supreme Court ruled 5-4 to block Trump from firing Federal Reserve governors at will.
- Trump first accused Cook of mortgage fraud in August 2025, saying he would fire her if she did not resign.
Legal Rebuttal
Cook's lawyers Abbe David Lowell and Norman Eisen issued a letter on Wednesday offering a detailed rebuttal to Trump's allegations. The lawyers said an inadvertent error is not fraud, noting that Trump and a third of his cabinet reportedly made similar mistakes. They argued the attacks are an attempt by Trump to force the Federal Reserve to bend to his will.
White House Threat
In a message dated August 5, the White House warned that Trump was considering firing Cook due to sufficient reason to believe she made false statements on mortgage agreements. The White House gave Cook three weeks, until Wednesday, to respond. This is the second time Trump has sought to use mortgage fraud allegations to remove Cook.
Supreme Court Precedent
In a five-to-four ruling in June, the Supreme Court blocked Trump from firing Federal Reserve governors at will. Cook had filed a lawsuit claiming the allegations were a pretext for removing her over policy differences. No president has attempted to oust a Federal Reserve official since the body was founded more than a century ago.
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Fed Governor Cook rejects Trump mortgage fraud claims as baseless
