Trump Renews Bid To Remove Fed Official Lisa Cook

President Donald Trump is renewing his push to oust Federal Reserve Gov. Lisa Cook from the seven-member board after a Supreme Court ruling found that his previous attempt did not afford her due process.

Dan Scavino, who heads the Office of Presidential Personnel, on Wednesday sent Cook a letter informing her that Trump is considering firing her from the central bank and giving her 21 days to respond to allegations that she made false statements on mortgage documents.

This would be his second attempt to remove her, following an effort late last year. In late June, the Supreme Court rebuffed that move in a 5-4 decision but did not prevent Trump from firing her in the future. The court’s majority said the president had to essentially start over if he wanted to dismiss Cook and follow procedures that accord her clear notice of the allegations against her and an opportunity to respond.

The president has repeatedly raged against the Fed for not lowering interest rates more dramatically. After his first try to remove Cook, an appointee of President Joe Biden, he expressed a desire to have a “majority” on the central bank’s board, where he has appointed three of the seven sitting governors.

The underlying facts of whether Cook committed any wrongdoing have not yet been litigated, though she and her lawyer have denied the president’s accusations. A court ruling on the merits of Trump’s argument for removing her would set a precedent on the circumstances under which a Fed board member can be fired, which is legally allowed when there is “cause.”

“There is a distinct nexus between a basic level of trustworthiness and care in financial matters and the duties of a Member of the Board of Governors,” Scavino wrote in the letter to Cook, obtained by POLITICO. “Because the allegations in the Criminal Referral reflect on your honesty, trustworthiness, and competence to perform the duties of the office you currently hold, the President has determined that there is reason to believe they constitute cause to remove you from your position.”

Cook’s lawyer, Abbe Lowell, said the allegations “are as baseless now as they were a year ago” and cited the move as an effort to undermine the Fed’s policy autonomy.

“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 in a statement. “As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed.”

The Fed declined to comment. The news was earlier reported by ABC News.

The central bank at its policy meeting last month voted to keep rates steady, but three officials dissented from the move, arguing that the Fed should instead be raising rates in the face of elevated inflation. All three dissenters were heads of the Fed’s regional branches, who, unlike board members, are not presidentially appointed.