Overview
- The Supreme Court let Cook stay on the Fed while litigation continues but declined to decide the core constitutional question about a president’s power to remove a governor for cause.
- The White House, through Deputy Chief of Staff Dan Scavino, told Cook it is considering removal and gave her until August 26 to respond to mortgage‑related allegations.
- Those allegations began with an August 2025 referral from FHFA Director William Pulte to the Department of Justice and center on claims that Cook misrepresented primary residences on mortgage applications in Michigan and Georgia.
- Cook denies wrongdoing and calls the effort political, and key White House economic officials including Kevin Hassett have said they will not press to replace her even as the inquiry continues; Kevin Warsh’s confirmation as Fed chair has reshaped the bank’s leadership dynamic.
- If the administration presses removal after the response deadline the case could return to courts and set a precedent that affects Fed independence, board continuity, and how policy disagreement translates into personnel fights.