President Donald Trump is making a renewed attempt in August 2026 to remove Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, following a prior failed effort [1, 2]. On August 5, a White House letter signed by Deputy Chief of Staff Dan Scavino informed Cook that Trump is "considering removing" her from the Fed and demanded a written response within 21 days [1, 2, 3]. The letter accuses Cook of making false statements on mortgage applications and describes her conduct as "grossly negligent" and unfit for office, citing potential prison time of up to 30 years [1, 4]. It also states her alleged behavior "undermines public confidence" in the Federal Reserve [3].

Cook and her lawyers have consistently denied the mortgage fraud allegations, calling them baseless. Her attorney Abbe D Lowell said, "These allegations are as baseless now as they were a year ago when President Trump tried to remove Governor Cook and interfere with the independence of the Federal Reserve...[We] will challenge this latest pretext and preserve her position and the historic role of the Fed" [1]. Cook herself said the effort "was never about mortgage documents signed years before I became a Federal Reserve governor," but rather an attempt to remove her on a "manufactured pretext" due to political pressure [5].

Trump first sought to oust Cook in August 2025 but was blocked by a federal court. The U.S. Supreme Court upheld the block in a narrow 5-4 June 2026 ruling focused on procedural due process grounds, without ruling on the underlying fraud claims [1, 2, 3]. Trump reacted angrily to the Supreme Court decision and pledged to take "appropriate action immediately" against Cook [2].

Lisa Cook was appointed to a 14-year term in 2022 by President Joe Biden and is the first Black woman to serve as a Federal Reserve governor, with her term set to expire in 2038 [1, 6]. Trump’s renewed effort marks part of a broader challenge to Federal Reserve independence during his second term, including a criminal probe of former Fed Chair Jerome Powell [2, 5].

The deadline for Cook to respond to the White House letter is August 26, 2026, after which Trump may make a final decision on her removal [2, 3].