Daijiworld Media Network- Washington
Washington, Aug 29: The tussle between the White House and the US Federal Reserve escalated further as Fed Governor Lisa Cook moved court against President Donald Trump’s bid to remove her, calling the move illegal and politically motivated.
Cook, in her lawsuit filed Thursday, said the mortgage allegations being used as a pretext for her dismissal were baseless. Her lawyers argued that if there was any error in mortgage documents, it was merely “clerical” and without intent to deceive.
At the centre of the controversy are claims made by Trump-appointed Federal Housing Finance Agency chief Bill Pulte, who accused Cook of fraudulently declaring homes in Michigan and Georgia as “primary residences” to secure favourable loan terms in 2021. The matter has been referred to prosecutors.
Cook’s lawyers, however, asserted that no one was harmed, and there was no material benefit from the alleged error. “Mislabelling a home’s purpose prior to her Fed appointment, without proof of intentionality or material gain, cannot constitute sufficient ‘cause’ for removal,” they argued before the court.
The case marks a major flashpoint in Trump’s ongoing attempts to bring the independent central bank under his control. Cook alleged that her removal, alongside attempts to pressure Fed Chair Jerome Powell to resign, was part of the president’s wider agenda.
Meanwhile, Pulte has intensified his attacks on social media, claiming matching signatures prove Cook’s alleged misconduct. In response, Cook argued that Trump sought to fire her without giving her the chance to defend herself, violating her constitutional right to due process.
US District Judge Jia Cobb, appointed by former President Joe Biden, will hear Cook’s request for a temporary restraining order at 10 a.m. Friday in Washington.
Interestingly, this is not the only case where Trump’s administration has raised mortgage fraud claims. Similar allegations have recently been levelled against two of his prominent critics — California Senator Adam Schiff and New York Attorney General Letitia James. Both have denied any wrongdoing, while Democrats accused the president of weaponising federal law enforcement to target opponents.