Federal Reserve Governor Lisa Cook incurred more than $1.3 million in legal and security fees following attacks from the Trump administration, according to ethics disclosures filed on Wednesday. The White House targeted Cook last summer as Donald Trump intensified his campaign to pressure the Fed into cutting interest rates.
Bill Pulte, director of the Federal Housing Finance Agency and soon-to-be acting US intelligence chief, accused Cook of mortgage fraud on social media, alleging she misled lenders by listing a second home as her primary residence to secure a better mortgage rate. Cook denied the accusations, claiming the administration was “cherrypicking” discrepancies for political reasons.
Trump fired Cook from her role on the Federal Open Market Committee (FOMC), where she was one of 12 voting members setting interest rates. A federal court temporarily reinstated her, but her dismissal is now at the centre of a Supreme Court case examining whether the firing was legal. In a January hearing, justices appeared sceptical of the manner in which Trump removed her.
Two non-profit organisations, State Democracy Defenders Fund and Contina Impact, reimbursed Cook for over $1 million in legal and security services. The Supreme Court’s decision, expected before the end of June, will determine the extent of the Fed’s independence from the White House. Economists widely agree that an independent central bank is essential for economic stability.
