Trump Makes Fresh Plea for Ruling Allowing Him to Oust Lisa Cook

The US Justice Department made fresh arguments about why President Donald Trump should be allowed to oust Federal Reserve Governor Lisa Cook over alleged mortgage fraud while she challenges her removal, saying her claim that her termination is a pretext to lower interest rates is “baseless.”

US lawyers on Thursday again urged a judge to deny Cook’s request for an order barring her dismissal while the case proceeds, reinforcing arguments from a high-stakes hearing last week. The filing comes hours after reports that the Justice Department has opened a criminal investigation into Cook.

The government argues that fraud allegations first raised by Federal Housing Finance Agency Director Bill Pulte are sufficient “cause” under US law for Trump to fire her. Pulte says Cook appears to have lied on mortgage documents by falsely claiming two different homes as her primary residence in 2021 in order to get more favorable loan terms.

The Justice Department argued in Thursday’s filing that judges are not permitted to “second guess” Trump’s determination that he has cause to fire Cook. The government also again rejected her claim that she’s being fired as a pretext so that Trump can gain control of the Fed and lower interest rates.

“Her only ‘evidence’ is that the President has criticized the Board over policy,” according to the filing. “But the mere existence of policy disagreement does not mean the President removed Dr. Cook because of that policy disagreement.”

US District Judge Jia Cobb in Washington, who held an emergency hearing last week, hasn’t said when she’ll issue a decision.

To contact the reporter on this story:
Erik Larson in New York at elarson4@bloomberg.net

To contact the editors responsible for this story:
Anthony Aarons at aaarons@bloomberg.net

David Voreacos

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