The Trump administration has requested an emergency order from the Supreme Court to remove Lisa Cook from the Federal Reserve’s board of governors. This move follows an appeals court's refusal to support the ousting of Cook, who was appointed by President Joe Biden. The administration's actions are part of President Donald Trump’s broader strategy to reshape the Federal Reserve's governing board, which is traditionally independent from political influence.

No president has ever dismissed a sitting Fed governor in the agency's 112-year history. Cook has publicly stated that she will not resign and will not be “bullied” by Trump. Her attorney, Abbe Lowell, emphasized that Cook will continue to fulfill her responsibilities as a Senate-confirmed Board Governor.

In a separate development, Senate Republicans confirmed Stephen Miran, Trump’s nominee, to fill an open position on the Fed board. Both Cook and Miran participated in a recent vote where the Fed decided to cut its key interest rate by a quarter-point.

Trump initially sought to remove Cook on August 25, but a federal judge ruled last week that such a removal was likely illegal, reinstating her to the board. The president has accused Cook of mortgage fraud, alleging that she claimed two properties in Michigan and Georgia as “primary residences” in mid-2021, prior to her appointment. Such claims could potentially lead to lower mortgage rates and smaller down payments compared to declaring one property as a rental or second home.

Solicitor General D. John Sauer, in the Supreme Court filing, stated, “Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations.”

However, Cook has denied any wrongdoing and has not faced criminal charges. Documents indicate that she referred to her Atlanta condo as a “vacation home” in a loan estimate from May 2021 and described it as a “2nd home” in a security clearance form. These documents seem to contradict the administration's allegations of fraud.

U.S. District Judge Jia Cobb ruled that the administration failed to meet the legal standard for firing Fed governors, which requires “for cause” justification limited to misconduct while in office. Since Cook did not join the board until 2022, Cobb also noted that Trump’s attempt to fire her would have violated her due process rights.

A federal appeals court panel voted 2-1 against the administration's request to proceed with Cook's removal. Trump's legal team contends that even if the alleged actions occurred before her tenure as governor, they raise questions about her trustworthiness and ability to manage interest rates and the economy responsibly.

The Supreme Court has previously distinguished the Federal Reserve from other independent agencies, suggesting that Trump cannot remove Fed governors without just cause. In its latest filing, the administration is asking Chief Justice John Roberts for a temporary order to remove Cook and a more permanent order from the entire court while her legal case is ongoing.