Lisa Cook Rejects Trump’s Mortgage Fraud Allegations

Federal Reserve Governor Lisa Cook has rejected President Donald Trump’s latest allegations of mortgage fraud, saying there is no legal basis for removing her from the central bank.

Cook’s lawyers argued that an alleged mistake on mortgage documents does not amount to fraud and accused the Trump administration of attempting to pressure the Federal Reserve into following the president’s policy preferences.

Under US law, Federal Reserve governors can only be removed “for cause.” Trump has renewed efforts to remove Cook, despite a US Supreme Court ruling in June that blocked him from firing Federal Reserve governors at will.

Cook previously challenged Trump’s attempt to dismiss her in court after he accused her of mortgage-related wrongdoing in 2025. She argued that the allegations were being used as a pretext to remove her because of policy differences.

The dispute comes amid growing tensions between Trump and the Federal Reserve. The president has repeatedly pushed for lower interest rates, while economists have warned that cutting rates too quickly could weaken the US dollar and fuel economic instability.

The Trump administration has also previously faced controversy over its treatment of former Federal Reserve Chair Jerome Powell, including a criminal investigation that was later dropped.

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