Particle.news
Download on the App Store

Fed Governor Lisa Cook Rejects White House Removal Notice

Her lawyers say there is no legal basis to fire her and warn that immediate litigation will follow if the administration presses the case.

Overview

  • Cook's attorneys filed a formal rebuttal on Wednesday that denies mortgage fraud and argues the White House offered no legally cognizable grounds for removal.
  • The latest notice from the White House gave Cook a deadline to respond after a letter dated August 5 said the president was considering removal for alleged false statements on mortgage forms.
  • The dispute follows an August 2025 criminal referral from FHFA Director William Pulte that first raised the mortgage-paperwork accusations now cited by the administration.
  • The U.S. Supreme Court in June blocked the first removal attempt and required the White House to give Cook notice and a chance to answer while leaving unresolved whether the allegations could meet the statutory "for cause" standard.
  • If the administration continues, courts are likely to settle the matter and a successful removal would let the president name a replacement with potential consequences for the Federal Reserve's policy independence and future interest-rate decisions.