By Rajwa Quasim
Lawyers representing Federal Reserve Governor Lisa Cook have submitted their response arguing that the Trump administration has no legal grounds to remove her from the central bank’s board. Cook, a Biden appointee, faces allegations of mortgage fraud from the Trump administration.
Cook’s lawyers, Abbe David Lowell and Norman Eisen, delivered their response to the White House on Wednesday. The administration gave her three weeks to respond to allegations that she identified two different properties as primary residences on mortgage documents. Her lawyers said the discrepancies were the result of an inadvertent error and that she had no intention of misleading lenders. Her legal team described the administration’s effort to remove her as part of a broader pattern they view as an assault on the Fed’s independence.
READ: Trump moves to oust Fed Governor Lisa Cook over mortgage fraud allegations (August 26, 2025)
Under U.S. law, Federal Reserve governors can be removed only for “cause,” not for political reasons. Her lawyers argue that “there is no legitimate basis for removing Cook from the Fed board, where her term extends to Jan. 31, 2038,” and that the purported errors were “an entirely inadvertent oversight.” They further pointed out that the president and roughly five members of his Cabinet have reportedly made similar claims in their own mortgage filings, arguing that the allegations are a pretext for removing Cook over policy differences. Under the Federal Reserve Act, governors are appointed to 14-year terms and can be removed by the president only for cause.
The current dispute stems from allegations raised by Federal Housing Finance Agency Director Bill Pulte, who alleged that Cook listed properties in Michigan and Atlanta as her primary residences.
Cook’s attorney Lowell wrote, “The process for seeking financing for the Atlanta condominium… began with Governor Cook using the lender’s website to seek information about a ‘vacation home’ mortgage — a clear indication of the loan type she was looking to acquire. […] The lender, which previously worked with Governor Cook to refinance her Massachusetts property earlier that year, knew that she had lived in Michigan for more than 15 years and worked full-time as a tenured professor at Michigan State University. Governor Cook gave no indication that she was leaving to take any new job in Atlanta. She consistently listed Atlanta property as her second home.”
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Her lawyers said, “For the second time in a year, we have explained why there is no legal basis for President Trump to remove Governor Cook for cause. An inadvertent error is not fraud. These attacks on Governor Cook are not about real estate paperwork; they are an attempt by President Trump to force the Federal Reserve to bend to his will.”
In August 2025, Trump made a similar allegation and told reporters, “I’ll fire her if she doesn’t resign.” This resulted in Cook filing a lawsuit challenging the allegations.
In June, the Supreme Court blocked Trump from removing Cook at will, ruling that she could remain in office while the case moves forward. The court did not clearly define what qualifies as “cause” for removing a Federal Reserve governor or how the president must establish it.