DOJ Tells Court Trump Can Lawfully Dismiss Fed’s Lisa Cook Amid Mortgage-Fraud Probe, Rejects “USD Rate-Cut” Motive

The Department of Justice filed new court materials on September 5 asserting that President Trump’s removal of Lisa Cook from the Federal Reserve Board is supported by articulated reasons and is not a mere pretext for monetary policy changes such as a rate cut.

Government attorneys asked the judge to deny Cook’s request to enjoin her dismissal during litigation, citing allegations originally raised by the FHFA and noting that Cook is contesting the termination while facing accusations related to mortgage fraud; contemporaneous reports indicated a DOJ inquiry was opened.

In its filing the DOJ emphasized that a policy disagreement alone does not establish improper motive, arguing the court should defer to the Executive’s stated justification while the legal process proceeds.