Fed Governor Lisa Cook Again Denies Trump’s Mortgage Fraud Allegation
Summary
- Fed Governor Lisa Cook said President Trump’s mortgage fraud allegation was “baseless and false.”
- Bloomberg said that if Trump again pursues removal proceedings against Cook, it could reignite a legal dispute over the Fed’s independence.
- Bloomberg said the controversy surrounding Cook is viewed as part of a push by Trump and his allies to install officials at the Fed who are more supportive of interest-rate cuts.
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Federal Reserve Governor Lisa Cook has again denied President Donald Trump’s allegation that she committed mortgage fraud.
In a letter sent to the White House on August 26, Cook’s lawyers called the allegation “baseless and false,” Bloomberg reported.
They added that Cook “has never committed mortgage fraud or any other intentional wrongdoing” and that there are no legally valid grounds to remove her from the Fed’s Board of Governors.
The latest clash comes as Trump considers whether to revive his effort to remove Cook. If he does, it could reopen a legal fight over the Federal Reserve’s independence.
Trump previously tried to oust Cook over the mortgage-related allegation, but failed to prevail at the Supreme Court several months ago. The court’s ruling at the time was narrowly split.
Bloomberg said the controversy surrounding Cook is viewed as part of a broader push by Trump and his allies to place officials at the Fed who are more supportive of interest-rate cuts.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.