Fed's Lisa Cook rejects Trump mortgage fraud claims

Federal Reserve Governor Lisa Cook rejected renewed White House mortgage fraud allegations on Wednesday, with her attorney saying President Donald Trump had no lawful grounds to fire her from the US central bank's board.

Attorney Abbe Lowell wrote that Cook had never committed mortgage fraud or intentional wrongdoing and that there was no legally valid cause to remove her from the Federal Reserve Board.

The response met a deadline set by an August 5 letter in which Trump said he was considering removing Cook. That was Trump's second attempt to oust her after the Supreme Court blocked a first attempt in June, finding that he had failed to give her notice and a chance to answer the allegations.

The White House letter alleged that Cook's conduct was, "at a minimum," grossly negligent and showed she was unfit for office. Cook has consistently denied the allegations.

No president has removed a sitting Fed governor in the central bank's 113-year history. The Federal Reserve sets monetary policy for the world's largest economy, and its governors are appointed by the president after Senate confirmation.