Cook’s Lawyer Challenges Trump’s Attempt to Remove Fed Governor

Background

Federal Reserve Governor Lisa Cook, appointed by former President Joe Biden, has faced a series of legal and political challenges in the past year. In late August 2025, President Donald Trump sought to remove her from the central bank after the Federal Housing Finance Agency (FHFA) director Bill Pulte forwarded a criminal referral to the Department of Justice alleging that Cook may have committed mortgage fraud. The allegation centered on Cook’s claim that two different properties were her primary residence simultaneously.

Trump’s Allegations and Legal Deadline

On August 5, Trump aide Dan Scavino sent Cook a letter asserting that “there is sufficient reason to believe that you made false statements on one or more mortgage agreements.” Scavino’s communication set a deadline for Cook to respond within three weeks. The letter highlighted what he described as two acts by Cook that, “taken together,” could justify her removal under the Federal Reserve Act.

Cook’s Legal Response

On Wednesday, Cook’s attorney, Abbe Lowell, delivered a five‑page letter to White House counsel David Warrington. In the correspondence, Lowell dismissed the mortgage‑fraud claim, stating that it was “unfounded and untrue.” He argued that attempting to remove Cook based on FHFA’s referral would disregard both the facts and the legal framework governing the Federal Reserve.

Lowell pointed out that neither of the cited actions constituted intentional wrongdoing or a criminal offense. He further noted that the alleged mistake occurred while Cook was acting in a private capacity before taking office and that an inadvertent oversight is neither fraudulent nor criminal. The lawyer also warned that firing Cook on the basis of Pulte’s allegations would be selective and raise questions about why the president is singling her out.

Context and Additional Allegations

Lowell referenced that President Trump, Treasury Secretary Scott Bessent, and Attorney General Todd Blanche have all reportedly listed multiple properties as primary residences in the past. He used this point to underscore that Cook’s situation is not unique.

The letter also included a supporting statement from Professor Kathleen Engel, a research law scholar at Suffolk University Law School, further bolstering Cook’s defense.

Legal Implications

In late June, the Supreme Court blocked Trump’s attempt to fire Cook but left open the possibility of a future removal. Cook has already filed a lawsuit challenging her dismissal. Lowell’s letter arrives just before the deadline set by Scavino, providing Cook’s legal team with a final opportunity to counter the president’s claims.