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Following the Supreme Court's judgment that no opportunity for explanation was given, a written response to mortgage fraud allegations is demanded.
U.S. President Donald Trump has once again rolled up his sleeves to dismiss a Federal Reserve (Fed) governor whom he considers a thorn in his side.
According to U.S. media, including ABC News, on the 7th (local time), the White House sent a letter to Fed Governor Lisa Cook on the 5th, stating that President Trump is considering her dismissal and notified her to submit a written response to the allegations within 21 days.
The letter stated that Governor Cook had committed crimes punishable by up to 30 years in prison, and even if not a crime, she had committed negligence that raises questions about her credibility as a Fed governor.
The White House's request for a response concerns allegations of mortgage fraud against Governor Cook. President Trump announced her dismissal in August last year, claiming that Governor Cook had committed misconduct during the mortgage process.
The Supreme Court halted the dismissal in June. However, without judging the merits of the dismissal decision, it took issue with the fact that Governor Cook was not given an opportunity to explain herself.
This White House letter is interpreted as an attempt to give Governor Cook a chance to argue her case and secure the procedural legitimacy of the dismissal.
When the Supreme Court's decision was announced, President Trump had previously announced that he would "immediately take appropriate action."
Governor Cook's side stated, "There is no legitimate reason for dismissal. As before, we will fight against the new pretexts (put forward by the White House) and protect her position as governor."
Governor Cook's position is that she did nothing wrong in the mortgage process and that President Trump is fabricating the incident to remove her.
Governor Cook, the first Black woman on the Fed's board, was appointed by the Joe Biden administration in 2022. This is why she became a target for President Trump.
Since there is no precedent for a president dismissing a Fed governor, the question of Governor Cook's dismissal is considered a significant event that tests the independence of the Fed.
The allegations of mortgage fraud against Governor Cook were raised by William Pultney, Director of the Federal Housing Finance Agency (FHFA). Director Pultney is a figure who gained President Trump's favor by repeatedly raising allegations against Trump's political rivals based on FHFA data.
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