Federal Reserve Governor Lisa Cook has formally rejected renewed mortgage fraud allegations raised by the White House, asserting that President Donald Trump lacks any legal basis to remove her from the Fed’s board. The response, submitted through her attorney Abbe Lowell, was delivered by an August 29 deadline set by an earlier White House letter dated August 5, in which Trump indicated he was considering her dismissal.

This marks the second attempt by Trump to oust Cook, following a June Supreme Court ruling that blocked his initial effort. In a 5-4 decision, the Court held that Trump had failed to provide Cook with proper notice and an opportunity to respond to the charges against her. The ruling emphasized the Federal Reserve’s autonomy, stating that the president does not have the authority to remove sitting Fed governors “for any reason, or no reason.” The Court did not address the validity of the mortgage fraud allegations themselves.

Cook, who is the first Black woman to serve as a Federal Reserve governor, has consistently denied any wrongdoing. The legal response submitted by her counsel categorically states that she has never engaged in mortgage fraud or other intentional misconduct. Lowell’s letter also contends that similar mortgage documentation, now cited in the allegations against Cook, was signed by Trump and several of his own cabinet members.

The Federal Reserve, established more than a century ago, is a nonpartisan entity responsible for managing U.S. monetary policy. Governors are appointed by the president and confirmed by the Senate, and historically, no sitting governor has ever been removed from office. The institution’s independence has been underscored repeatedly by policymakers and courts as a foundational principle.

During his second term, Trump has escalated criticism of the Fed’s independence, including launching a criminal investigation into former Fed Chairman Jerome Powell. The President previously described the June Supreme Court decision as unacceptable and vowed to take “appropriate action immediately” against Cook in response to the ruling.

The White House letter outlining the allegations accused Cook of behavior that was “grossly negligent” and claimed it rendered her unfit to serve. Cook has denied these accusations and maintains her position on the board as the dispute continues.