President Trump is considering removing Federal Reserve governor Lisa Cook from the central bank, according to a copy of a letter from the White House obtained by Yahoo Finance.

“Pursuant to the Supreme Court’s opinion from June 29, 2026, you are hereby provided notice that the President is considering removing you from your position on the Board of Governors of the Federal Reserve due to there being sufficient reason to believe that you made false statements on one or more mortgage agreements,” the Aug. 5 letter from White House Deputy chief of staff Dan Scavino read.

“These allegations are as baseless now as they were a year ago when President Trump tried to remove Governor Cook and interfere with the independence of the Federal Reserve,” Abbe Lowell, an attorney for Cook, said in a statement in response to the letter.

“No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent — there is no valid cause for removing Governor Cook. As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed,” Lowell added.

Read more: How much control does the president have over the Fed and interest rates?

This letter comes after the Supreme Court ruled in June in a 5-4 decision that Cook was entitled to remain in her position and receive notice and an opportunity to respond to allegations before being removed “for cause.”

“Only after Cook has had the opportunity to respond to the charges made against her … may a final decision be made,” Chief Justice John Roberts wrote. “And only then can the courts assess the validity and sufficiency of such charges.”

While the high court appeared to uphold limits on the president’s power to remove a member of the Fed, it did not weigh in on the underlying allegations against Cook, leaving the door open for Trump to remove her.

The Trump administration accused Cook of mortgage fraud last year, saying she had listed two different homes as her primary residence to secure more favorable loan terms. In August 2025, Bill Pulte, Director of the Federal Housing Finance Agency, submitted a criminal referral to the Department of Justice.

The letter says Trump has reviewed the allegations in the criminal referral and believes there is reason to believe Cook may have made false statements on one or more mortgage agreements.

Scavino wrote to Cook, “You have known since at least August 25, 2025, about these allegations. Yet, even though it has been over 10 months, you have never provided an explanation for this serious misconduct, despite having ample opportunity to do so. Nevertheless, the Supreme Court recently determined that you are entitled to notice of the allegations against you and an opportunity to respond prior to your removal.”

The letter pointed to two mortgages designated as primary residences that were signed within two weeks of each other. The first was for a home in Michigan, and the second was for a property in Georgia.

“The President believes it is inconceivable that you were not aware of your first commitment when making the second and impossible that you intended to honor both,” the White House said.

“Taken together, these acts may be sufficient to demonstrate that you committed a crime, as you appear to have acquired mortgages that do not meet certain lending requirements and could have received favorable loan terms under fraudulent circumstances.”

Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing. At Yahoo Finance, she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X @Jenniferisms and on Instagram.

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