White House: Trump 'lawfully removed' Fed's Lisa Cook for cause

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White House: Trump 'lawfully removed' Fed's Lisa Cook for cause

September 10, 2025 In a significant legal development, a federal judge has ruled that President Donald Trump's decision to remove Federal Reserve Governor Lisa Cook was lawful, according to the White House. The ruling, handed down by U.S. District Judge Jia Cobb, concluded that Trump had good cause to fire Cook over allegations of mortgage fraud, which predated her tenure at the Fed . The allegations, made by the Federal Housing Finance Agency Director Bill Pulte, a Trump appointee, centered on discrepancies in Cook's mortgage applications for two properties she owns in Georgia and Michigan. Pulte alleged that Cook claimed in separate applications that the properties were her primary residence, which could entitle her to lower rates. Cook, however, denies any wrongdoing . Judge Cobb's ruling, which blocked Trump from firing Cook, was based on the premise that only Cook's conduct on the job could be grounds for removal. Cobb found that the mortgage allegations were weak and unproven, and thus insufficient to justify Cook's summary termination. The judge also noted that the Trump administration's use of social media to air the allegations violated the Constitution's due process requirements . The White House spokesperson, Kush Desai, maintained that Trump's firing of Cook was lawful and improved the Federal Reserve's accountability and credibility. Desai argued that the removal of a governor for cause enhances the Fed's independence and credibility . The legal battle over Cook's future as a Fed governor has far-reaching implications for the president's ability to influence the central bank's interest rate decisions. Previous administrations and courts have provided considerable deference to the Fed's independence. However, Trump has repeatedly criticized the Fed and its chairman, Jerome Powell, for not cutting interest rates as he has demanded . If Cook loses her legal challenge and is dismissed, Trump-appointed Fed governors would hold four of the seven seats on the central bank's board, giving them more sway over the Fed's rulemaking and lending capabilities. The 12 regional bank presidents who also have a say on rates have five-year terms that are scheduled to expire in February, and their reappointment is contingent on the approval of the Fed board . Some Republican lawmakers, including key senators like Thom Tillis of North Carolina, have called for Cook's case to be adjudicated before any replacement is confirmed. Cobb noted in her ruling that the Trump administration conceded that the "for cause" protection meant Fed members could not be fired over policy disagreements, but she rejected the Justice Department's claim that the courts had no role in reviewing the legality of such a firing . The mortgage fraud allegations have been criticized as politically motivated, with some of Trump's political adversaries also facing similar claims. The Supreme Court has generally sided with Trump in his efforts to remove agency heads and members of independent boards and commissions. However, Cook's case is the first test of Trump's claim to fire an official "for cause" and whether the courts may second-guess or challenge his allegations against her . The outcome of Cook's case could inform whether Trump makes a similar bid to remove the board's chair, Jerome Powell, whom Trump has repeatedly attacked. The court battle over Cook's future as a Fed governor is expected to be appealed and may ultimately land at the Supreme Court . This article is based on the provided source materials and writing topic. For more information, please refer to the cited sources.