finance
Supreme Court Allows Federal Reserve Governor to Remain in Role During Lawsuit
The Supreme Court ruled 5-4 that a Federal Reserve governor can stay on the board while her lawsuit over removal proceeds. The case centers on mortgage documents for three properties filed before her appointment.
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The Supreme Court ruled 5-4 that Federal Reserve Governor Lisa Cook can remain on the board while her lawsuit challenging removal proceeds. The decision came after President Donald Trump sought to remove Cook, citing allegations that she listed properties in Michigan, Georgia, and Massachusetts as primary residences on mortgage applications.
Cook obtained three loans before her nomination.
In April 2021 she took a $361,000, 15-year mortgage at 2.5% for a Cambridge, Massachusetts condominium. Two months later she secured a $203,000, 15-year loan at 2.87% for an Ann Arbor, Michigan home. She also received a $540,000, 30-year mortgage at 3.25% for an Atlanta, Georgia condominium.
Her June 2025 financial disclosure listed the three mortgages and showed more than $50,000 in annual rental income from the Cambridge unit.
Pulte, then overseeing the agency regulating Fannie Mae and Freddie Mac, referred the matter to the Justice Department. Officials later confirmed a criminal investigation into possible mortgage application fraud. " Cook has not publicly addressed why two properties were listed as primary residences.
The lawsuit, filed August 28, argues the removal attempt was unlawful and threatened the Federal Reserve's independence.
