Trump Administration Renews Bid to Fire Fed Governor Lisa Cook Ahead of Interest Rate Vote

President Donald Trump's administration has renewed its unprecedented effort to remove Federal Reserve Governor Lisa Cook ahead of a crucial interest rate vote, arguing that the president has sole discretion to fire her "for cause." The Justice Department contends that the statute does not specify what constitutes "cause," making the president's removal decision unreviewable by courts. Cook faces allegations of mortgage fraud related to claims about her primary residences, accusations brought by Bill Pulte, a Trump appointee to the Federal Housing Finance Agency, which the DOJ is investigating. Cook’s attorneys argue the firing lacks sufficient cause and warn of risks to the Fed's independence and economic stability if the president can dismiss governors without proper justification. The legal dispute centers on whether Cook’s references to her Atlanta condominium as a "vacation home" undermine the fraud allegations and challenge the administration's basis for removal. This legal battle marks the first time in the Federal Reserve's history that a sitting president has attempted to fire a governor, raising concerns about the central bank's independence.