US President Donald Trump has called for the immediate resignation of Federal Reserve Governor Lisa Cook, following allegations of mortgage fraud made by his ally, Federal Housing Finance Agency (FHFA) Director Bill Pulte.
Gatekeepers News reports that Pulte has asked the Department of Justice (DOJ) to investigate Cook over alleged misrepresentation of mortgage terms.
According to a referral letter seen by Bloomberg News, Cook is accused of signing occupancy clauses on two separate mortgages in Michigan and Georgia, declaring the properties as her primary residence within weeks of each other. Pulte alleges that Cook may have falsified property records and bank documents to secure more favorable lending terms. One of the properties was later listed for rental, raising questions about potential misrepresentation.
The controversy surrounding Cook’s alleged actions could influence the trajectory of US monetary policy, investor sentiment, and the central bank’s independence. If Cook were to step down, it would create another high-stakes opening on the Federal Reserve Board, allowing Trump to further reshape the policymaking body in his favor.
Trump’s demands for Cook’s resignation come amid his repeated criticism of Fed Chair Jerome Powell for not lowering interest rates sooner. Trump has vowed to replace Powell with a chair committed to lowering interest rates.
As of now, Cook has not publicly commented on the allegations, and the Federal Reserve and DOJ have declined to issue statements.
Lisa Cook is a respected economist and the first Black woman to serve on the Fed’s board.
She was appointed in 2022 by President Joe Biden, and her current term extends until 2038. She has previously served on the Council of Economic Advisers under former President Barack Obama.
