Federal Reserve Governor Lisa Cook on Tuesday pushed back against President Donald Trump's effort to remove her from office, arguing in a court filing that the mortgage-related allegations at the center of the controversy were already disclosed during her confirmation process.
Inconsistencies Were Already Known
Cook, the first black woman to serve as a Fed Governor, is fighting Trump’s attempts to fire her for alleged fraud, for claiming all three of her properties as primarily residences in mortgage applications, potentially to obtain lower interest rates, according to a Reuters report.
In a filing submitted to the U.S. District Court in Washington, Cook said she had already listed the three different mortgages in documents submitted to the White House and the Senate in 2022. According to the filing, “any inconsistencies were known when she was confirmed and cannot give Trump grounds to fire her now.”
In her filings, Cook has listed a Michigan property as her primary residence, and her Georgia home as a “2nd home,” with both properties labeled as “present residences” in another questionnaire. She also mentions a third property in Massachusetts as a second home and rental.
Cook’s lawyer, Abbe Lowell, says, “If those are facial contradictions, as the Government and President claim… Senators or White House advisors could have inquired of her about any alleged ‘facial inconsistencies.'”
Cook has since asked the court to block Trump’s attempts to remove her, saying that the fraud allegations were a pretext, and that the President lacks the authority to remove a Fed governor.
Trump Eyes Rare FOMC Majority
According to macro strategist Craig Shapiro, Cook’s removal could hand Trump a rare majority in the Federal Open Market Committee, allowing him to appoint two governors, resulting in a 4-3 majority on the board. Following Chair Jerome Powell’s departure in 2026, this could expand to 5-2.
This comes amid Trump’s repeated attacks on the Federal Reserve’s independence, having divided officials into camps aligned with former President Joe Biden versus those who were currently siding with him, in a Truth Social post last week.
The escalating tensions between Trump, the Fed and Cook have resulted in a rush to precious metals among investors, fueled by concerns of persistent inflation and the loss of central bank independence.
Photo Courtesy: Tanarch on Shutterstock.com
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