President Trump is renewing his effort to oust Lisa D. Cook from the Federal Reserve Board.

In a letter to Cook, a Biden Administration nominee, Daniel Scavino, Assistant to the President and Deputy Chief of Staff and Director of the Office of Presidential Personnel, repeated allegations that Cook may have made false statements on one or more mortgage applications and stated that the President is considering removing her from her position as a result.

He wrote that William J. Pulte, FHFA Director, submitted a criminal referral to the Justice Department.

Cook’s attorney, Abbe Lowell, has called the allegations baseless. Cook has referred to the allegations as clerical errors.

This is Trump’s second effort to oust Cook. The Supreme Court blocked Trump’s first effort, saying she had not been given the formal right to respond to the allegations against her.  However, the court did not provide details about how Trump could oust her. The Federal Reserve Act states that a President can only remove a Fed member “for cause.” The court did not discuss the specific allegations against Cook.

The significance of Trump’s renewed effort, however, extends well beyond the question of whether providing Cook with this notice and an opportunity to respond satisfies the due process requirements identified by the Supreme Court and, ultimately, whether Trump can lawfully remove her. The episode can also be viewed as a continuing threat to the independence of the Fed.

Congress deliberately gave Fed governors long, staggered terms and provided that they may be removed by the President only “for cause,” in part to insulate monetary policy decisions from short-term political pressures. If a President can remove a Fed governor based on allegations that the governor committed misconduct, particularly when the allegations concern conduct unrelated to the governor’s performance of official duties, the scope of the “for cause” protection—and the degree to which the Fed remains institutionally independent from the President—could become a matter of significant constitutional and practical importance.

The concern is heightened because, as we note below, the President has already successfully If Trump ultimately satisfies the procedural requirements for removing Cook, a successful removal could establish a precedent that makes it easier for future Presidents to exert greater control over the composition of the Fed and, potentially, over monetary policy itself.

In his letter to Cook, Scavino said there is “sufficient reason to believe that you made false statements on one or more mortgage agreements.” He said that Cook signed a document stating that she intended to use a Michigan property as her principal residence. Two weeks later, she purchased a condominium in Atlanta in which she also stated that the property would be her principal residence. She later listed that property for rent but never disclosed any rental income in her financial disclosures, according to the letter.

“The President believes it is inconceivable that you were not aware of your first commitment when making the second and impossible that you intended to honor both,” Scavino wrote.

He wrote that taken together, “these acts may be sufficient to demonstrate that you committed a crime, as you appear to have acquired mortgages that do not meet certain lending requirements and could have received favorable loan terms under fraudulent circumstances.”

He said that the interest rates on secondary mortgage loans are 0.25-0.50% higher than the rates on loans secured by primary residences.

“Based on these facts, a jury could find that you intended to defraud these institutions for your own benefit, but at a minimum, this conduct was grossly negligent and demonstrates that you are unfit for the office in which you serve as a controlling member of the Federal Reserve,” Scavino wrote.

Cook has known about the allegations since August 25, 2025, but she has never “provided an explanation for this serious misconduct, despite having ample opportunity to do so,” according to Scavino.

He added that the letter is providing that opportunity, giving her 21 days to respond, resulting in a deadline of August 26.

Trump has succeeded in ousting other members of boards and commissions. Democrat Gwynne Wilcox was removed from the NLRB, where she had been Board Chair.  Democrats Rebecca Slaughter and Alvara Bedoya were removed from the FTC, although Bedoya later resigned. Democrats Tanya Otsuka and Todd Harper were removed from the NCUA board. However, the law governing the NCUA does not have a provision stating that members may only be removed for cause.