US President Donald Trump on Wednesday called for the resignation of Federal Reserve Governor Lisa Cook, following claims made by his close ally, Federal Housing Finance Agency (FHFA) Director Bill Pulte, who has asked the Department of Justice (DOJ) to investigate Cook over alleged mortgage fraud.
If Lisa Cook were to step down, it would create another high-stakes opening on the Federal Reserve Board at a time when Donald Trump is openly pressing for aggressive interest rate cuts from Fed Chair Jerome Powell.
What are the allegations against Lisa Cook?
According to a referral letter seen by Bloomberg News, Trump ally Bill Pulte has urged Attorney General Pam Bondi and DOJ official Ed Martin to investigate Lisa Cook over two mortgages obtained in 2021.
The letter claims that Fed Governor Lisa Cook may have falsified property records and bank documents in order to secure more favourable lending terms. Specifically, she is accused of signing occupancy clauses on two separate mortgages — one in Michigan and another in Georgia — both declaring the properties as her primary residence within weeks of each other.
One of those properties, Pulte alleges, was later listed for rental, raising questions about potential misrepresentation. He has urged prosecutors to examine whether her actions constitute mortgage fraud under US criminal statutes.
How does this connect to Trump’s broader campaign against Democrats?
The referral marks an expansion of Donald Trump’s ongoing legal and political campaign targeting Democratic figures. His administration has already levelled mortgage fraud accusations against prominent Democrats such as Senator Adam Schiff and New York Attorney General Letitia James, both of whom are longstanding critics of the former president.
By bringing the allegations to the Federal Reserve, Trump’s allies are also applying indirect pressure on Fed Chair Jerome Powell, whom the US President has repeatedly attacked for what he calls “late” and “weak” monetary policy decisions. Trump has vowed to replace Powell with a chair committed to lowering interest rates.
What has been Lisa Cook’s response?
As of Wednesday night, Lisa Cook has not publicly commented on the allegations. The Federal Reserve and the Justice Department have also declined to issue statements. No charges have yet been filed, and it remains uncertain whether Pam Bondi will act on Pulte’s request.
Lisa Cook, a respected economist and the first Black woman to serve on the Fed’s board, was appointed in 2022 by President Joe Biden. She was subsequently re-nominated for a full term lasting until 2038.
Why does this matter for the Federal Reserve and US policy?
Cook’s potential resignation would hand Donald Trump yet another opportunity to reshape the Federal Reserve’s policymaking body in his favour. He has already filled one slot following the early departure of Adriana Kugler, another Biden appointee, and installed his aide Stephen Miran as an interim replacement.
The controversy therefore extends beyond legal scrutiny. It could influence the trajectory of US monetary policy, investor sentiment, and the central bank’s independence.
Donald Trump, Federal Reserve, Lisa Cook, mortgage fraud, FHFA, FHFA Director Bill Pulte, fed rate cut
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