Supreme Court to Review Trump’s Power to Dismiss Federal Reserve’s Cook
FOX Business host Larry Kudlow explains why Trump has the authority to choose his own appointees at agencies like the Federal Reserve on ‘Kudlow.’
The Supreme Court is set to hear arguments this week regarding President Donald Trump’s authority to remove Lisa Cook from the Federal Reserve’s Board of Governors. This case carries significant implications for the independence of the central bank.
The controversy began last year when officials from the Trump administration accused Cook of mortgage fraud, alleging she misrepresented her primary residence on loan applications. In response to these allegations, Trump attempted to dismiss Cook, but lower courts have intervened, blocking his efforts thus far.
A ruling favoring the White House could enhance Trump’s attempts to assert control over the Federal Reserve, which includes his ongoing efforts to oust Chair Jerome Powell.
TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY
Chairman of the U.S. Federal Reserve Jerome Powell speaks with Lisa Cook, member of the Board of Governors of the Federal Reserve, as he chairs a meeting at the central bank in Washington on June 25, 2025. (Saul Loeb/AFP/Getty Images / Getty Images)
Central to this case is Cook’s lawsuit against Trump, which revolves around three mortgages she secured prior to her appointment to the Federal Reserve. These loans, associated with properties in Michigan, Georgia, and Massachusetts, have raised questions about whether she misrepresented the intended use of these homes.
In August, Trump highlighted these allegations as part of his campaign to remove Cook from her position as a Federal Reserve governor, a role critical for shaping the nation’s economic policy.
FEDERAL RESERVE GOVERNOR LISA COOK SUES TRUMP
Cook’s lawsuit contends that Trump’s attempt to fire her is unlawful and undermines the Federal Reserve’s independence. Filed in federal court on August 28, the lawsuit does not directly address the allegations regarding her mortgage filings.
The issue was initially raised by Bill Pulte, a Trump appointee leading the federal agency that oversees Fannie Mae and Freddie Mac. Pulte made two referrals to the Justice Department linking Cook to the three properties.
A side-by-side image of President Donald Trump and Federal Reserve Governor Lisa Cook (Andrew Harnik/Al Drago/Getty Images / Getty Images)
Loans for primary residences typically offer more favorable terms, as lenders perceive them as less risky compared to mortgages for vacation homes or rental properties. In her most recent financial disclosure report, which federal officials are required to submit, Cook lists all three mortgages alongside her income, retirement accounts, and investments. She electronically signed and submitted this report to the U.S. Office of Government Ethics on June 15, 2025.
Federal Reserve Governor Lisa Cook’s three mortgages are listed on her most recent financial disclosure report. (U.S. Office of Government Ethics/Fox News Digital)
The report, spanning 12 pages, reveals that Cook earned over $50,000 annually in rental income from her Cambridge, Massachusetts, condominium, which she purchased in 2002 while serving as a professor at Harvard University. For this property, she secured a 15-year loan of $361,000 at a 2.5% interest rate in April 2021.
Two months later, Cook acquired a $203,000, 15-year mortgage at a 2.87% rate through the University of Michigan Credit Union for a three-bedroom home in Ann Arbor, where she taught economics and international relations at Michigan State University.
Additionally, she obtained a $540,000, 30-year mortgage for a luxury condo above the Four Seasons hotel in Atlanta, Georgia, with a 3.25% interest rate from the Bank Fund Staff Federal Credit Union.
A Google Map view of the Four Seasons hotel and condominiums in Atlanta, Georgia and of a home in Ann Arbor, Michigan, both tied to Federal Reserve governor Lisa Cook. (Google Maps/Getty Images / Google Maps)
In the loan agreement for the Atlanta property, Cook “affirmed that this property would serve as her primary residence within 60 days of the execution of the mortgage and would serve as her primary residence for a full year,” according to Pulte’s referral letter to the Justice Department.
While the court has not yet indicated when it will issue a ruling, it typically announces decisions by late June or early July.
FOX Business host Larry Kudlow explains why Trump has the authority to choose his own appointees at agencies like the Federal Reserve on ‘Kudlow.’
The Supreme Court is set to hear arguments this week regarding President Donald Trump’s authority to remove Lisa Cook from the Federal Reserve’s Board of Governors. This case carries significant implications for the independence of the central bank.
The controversy began last year when officials from the Trump administration accused Cook of mortgage fraud, alleging she misrepresented her primary residence on loan applications. In response to these allegations, Trump attempted to dismiss Cook, but lower courts have intervened, blocking his efforts thus far.
A ruling favoring the White House could enhance Trump’s attempts to assert control over the Federal Reserve, which includes his ongoing efforts to oust Chair Jerome Powell.
TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY
Chairman of the U.S. Federal Reserve Jerome Powell speaks with Lisa Cook, member of the Board of Governors of the Federal Reserve, as he chairs a meeting at the central bank in Washington on June 25, 2025. (Saul Loeb/AFP/Getty Images / Getty Images)
Central to this case is Cook’s lawsuit against Trump, which revolves around three mortgages she secured prior to her appointment to the Federal Reserve. These loans, associated with properties in Michigan, Georgia, and Massachusetts, have raised questions about whether she misrepresented the intended use of these homes.
In August, Trump highlighted these allegations as part of his campaign to remove Cook from her position as a Federal Reserve governor, a role critical for shaping the nation’s economic policy.
FEDERAL RESERVE GOVERNOR LISA COOK SUES TRUMP
Cook’s lawsuit contends that Trump’s attempt to fire her is unlawful and undermines the Federal Reserve’s independence. Filed in federal court on August 28, the lawsuit does not directly address the allegations regarding her mortgage filings.
The issue was initially raised by Bill Pulte, a Trump appointee leading the federal agency that oversees Fannie Mae and Freddie Mac. Pulte made two referrals to the Justice Department linking Cook to the three properties.
A side-by-side image of President Donald Trump and Federal Reserve Governor Lisa Cook (Andrew Harnik/Al Drago/Getty Images / Getty Images)
Loans for primary residences typically offer more favorable terms, as lenders perceive them as less risky compared to mortgages for vacation homes or rental properties. In her most recent financial disclosure report, which federal officials are required to submit, Cook lists all three mortgages alongside her income, retirement accounts, and investments. She electronically signed and submitted this report to the U.S. Office of Government Ethics on June 15, 2025.
Federal Reserve Governor Lisa Cook’s three mortgages are listed on her most recent financial disclosure report. (U.S. Office of Government Ethics/Fox News Digital)
The report, spanning 12 pages, reveals that Cook earned over $50,000 annually in rental income from her Cambridge, Massachusetts, condominium, which she purchased in 2002 while serving as a professor at Harvard University. For this property, she secured a 15-year loan of $361,000 at a 2.5% interest rate in April 2021.
Two months later, Cook acquired a $203,000, 15-year mortgage at a 2.87% rate through the University of Michigan Credit Union for a three-bedroom home in Ann Arbor, where she taught economics and international relations at Michigan State University.
Additionally, she obtained a $540,000, 30-year mortgage for a luxury condo above the Four Seasons hotel in Atlanta, Georgia, with a 3.25% interest rate from the Bank Fund Staff Federal Credit Union.
A Google Map view of the Four Seasons hotel and condominiums in Atlanta, Georgia and of a home in Ann Arbor, Michigan, both tied to Federal Reserve governor Lisa Cook. (Google Maps/Getty Images / Google Maps)
In the loan agreement for the Atlanta property, Cook “affirmed that this property would serve as her primary residence within 60 days of the execution of the mortgage and would serve as her primary residence for a full year,” according to Pulte’s referral letter to the Justice Department.
While the court has not yet indicated when it will issue a ruling, it typically announces decisions by late June or early July.
