US President Donald Trump on Wednesday demanded the resignation of Federal Reserve Governor Lisa Cook following accusations of having committed a mortgage fraud. The claims stem from a letter dated August 15, in which Federal Housing Finance Agency director Bill Pulte asked the Justice Department to investigate two mortgages Cook secured in recent years.
Referencing the allegations on his social media platform, Trump wrote, “Cook must resign, now!!!”
Pulte, a frequent critic of the Federal Reserve and Chair Jerome Powell, has been vocal about the central bank’s interest rate policies and has pushed for an inquiry into the bank’s expensive headquarters renovation.
“She needs to explain herself, but it’s all there in black and white,” Pulte told CNBC in an interview. “I think she needs to resign quickly.”
According to Pulte, Cook allegedly declared two separate properties as her primary residence within weeks of each other, one in Michigan in June 2021 and another in Georgia. The Georgia property was later listed as a rental, raising questions about the legitimacy of the declarations.
He posted the letter outlining the claims on social media and alleged Cook had “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Despite his political alignment, Pulte insisted his actions were not politically motivated. “There can be no mortgage fraud. This came across our desk, and it’s my duty to report it,” he said. “It wouldn’t matter if she were a Republican or a Democrat. It is what it is.”
The Federal Reserve declined to comment on the issue as reported by CNN.
FED FACES INTERNAL AND EXTERNAL PRESSURE
The renewed scrutiny on Cook marks an escalation in the Trump camp’s long-standing criticism of the Federal Reserve, especially against officials not seen as aligned with the former president.
Trump continues to press the Fed to lower interest rates and has kept up pressure on Powell, whom he derides as “Too Late.” The central bank began easing rates last fall after significant hikes to combat post-pandemic inflation. Although inflation neared the Fed’s 2% target earlier this year, rate cuts have since paused as officials evaluate the economic impact of Trump’s tariff policies.
As Cook’s future at the Fed comes under question, the Senate Banking Committee is preparing to evaluate Trump’s nominee Stephen Miran to replace outgoing Governor Adriana Kugler.
Still, analysts suggest that Cook may not be compelled to step down just yet. “For Cook, resigning will not end the legal probe. It is why we see no incentive for her to react to Pulte by departing before the next (Fed) meeting,” said Jaret Seiberg of TD Cowen Washington Research Group.
If Cook were to resign, the number of governors appointed solely by Democratic presidents would fall to two – Michael Barr and Philip Jefferson. Powell’s tenure as chair extends through May 2026, with his overall term lasting until 2028.
Cook, notably, is the first Black woman to serve on the Fed’s Board of Governors.
The controversy emerges as Fed officials gather in Jackson Hole, Wyoming, for their annual policy symposium. Powell is expected to hint at potential rate cuts in the latter half of the year, focusing on labor market vulnerabilities. Futures markets currently forecast an 83% chance of a rate cut in September.
– Ends
With inputs from agencies
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