Trump revives bid to fire Fed Gov. Lisa Cook after Supreme Court setback

• The Supreme Court ruled 5-4 in June that Trump must give Cook notice and a chance to respond before removing her, rejecting the administration's claim that presidential 'cause' determinations are beyond judicial scrutiny
• Trump's allegations stem from claims by Federal Housing Finance Agency Director Bill Pulte that Cook falsified bank documents for favorable mortgage terms before joining the Fed, though she has never been charged with a crime
• Cook stated Wednesday she is 'prepared to act by raising rates, if necessary' to combat inflation, aligning with Fed officials signaling potential policy tightening contrary to Trump's repeated demands for lower interest rates

Summary: Trump Renews Effort to Remove Fed Governor Lisa Cook

President Trump has revived his attempt to fire Federal Reserve Governor Lisa Cook, issuing a new letter through Deputy White House Chief of Staff Dan Scavino alleging mortgage fraud. The letter, dated Wednesday, gives Cook three weeks to respond to accusations of "evidence on one or more mortgage agreements" before a final removal decision is made.

This action follows a Supreme Court ruling on June 29 that blocked Trump's initial firing attempt in a 5-4 decision but allowed the president to try again if he provided proper notice and opportunity to respond. Chief Justice John Roberts specified that Cook must have the chance to address charges before any final decision.

Key Developments:

• Cook denies all allegations and has never been charged with a crime
• Her attorney, Abbe Lowell, called the claims "baseless" and vowed another legal challenge
• The allegations stem from criminal referrals by Federal Housing Finance Agency Director Bill Pulte, a Trump ally, regarding alleged document falsification for mortgage terms before Cook joined the Fed

Market Context:

Cook recently signaled hawkish monetary policy views, stating Wednesday she is "prepared to act by raising rates, if necessary" if inflation doesn't ease, potentially motivating the timing of Trump's renewed removal effort.

This confrontation is part of a broader conflict over Federal Reserve independence. Trump previously attacked former Fed Chair Jerome Powell over interest rate policy. Powell's term expired in May, with Kevin Warsh sworn in as successor on May 22.

A separate Justice Department investigation into Fed building renovations was dismissed in March and closed in April without charges after a federal judge found it constituted improper political harassment.