President Donald Trump's administration has renewed its effort to remove Federal Reserve Governor Lisa Cook, sending her a letter that says the White House is considering her dismissal. The letter gives Cook three weeks to respond to the allegations against her.
The move follows a setback in June, when the Supreme Court rebuffed the administration's initial attempt to oust Cook. Trump has sought to replace Cook for months, citing unproven allegations of mortgage fraud.
The letter warns Cook she could face up to 30 years in prison if the accusations are substantiated. Deputy Chief of Staff Dan Scavino delivered the letter to Cook.
Federal Reserve governors are appointed for 14-year terms to insulate them from political pressure, a design intended to ensure the central bank can make monetary policy decisions free from short-term electoral cycles. Cook's term extends until 2038.
The Supreme Court's June ruling did not explicitly bar a president from removing a Fed governor, but it set a high bar for such an action. The court found the administration had not followed proper procedure in its initial attempt to remove Cook.
Cook has maintained her innocence on the fraud allegations and has continued to participate in Federal Open Market Committee meetings and other central bank functions since the first removal attempt.
Legal experts expect the situation to escalate into another court battle, potentially reaching the Supreme Court again.
