Federal Reserve Governor Lisa Cook is challenging President Donald Trump's effort to remove her after documents surfaced indicating one of her properties was listed as a vacation home, casting doubt on allegations of mortgage misrepresentation.
Documents Show Atlanta Condo Listed As Vacation Home
Copies of documents reviewed by The Wall Street Journal on Saturday reveal that Cook described her Atlanta condominium as a “vacation home” on a May 2021 preliminary loan estimate and again on a December 2021 government background check.
These records contradict claims by the Trump administration that she intentionally misrepresented the property as her primary residence.
Trump And Pulte Target Cook Over Mortgage Forms In Fraud Dispute
Trump officials have pointed to loan forms signed by Cook, which pledged to occupy the homes as primary residences for at least a year, as evidence of misrepresentation.
In a court filing, Justice Department lawyers said the applications "would constitute mortgage fraud if made knowingly, and at a minimum reflect a lack of care in financial matters."
Cook's attorneys maintain she never committed mortgage fraud, highlighting the discrepancy between her signed forms and the latest documents.
Federal Housing Finance Agency Director Bill Pulte also weighed in on X that Cook's mortgage agreement — not estimates — listed the Atlanta condo as her primary residence, calling it "even more concerning" for her.
Trump Sought Lisa Cook's Removal Before Key Fed Rate Decision
On Thursday, the Trump administration asked the D.C. Federal Appeals Court to allow the firing of Cook to take effect before the Fed's interest rate-setting meeting the following week.
Justice Department lawyers urged the court to rule by Monday afternoon, ahead of the Federal Open Market Committee's Tuesday meeting on potential rate cuts.
The request followed a ruling by District Judge Jia Cobb, who blocked Cook's removal, saying it violated constitutional protections and raised concerns about central bank independence.
Trump had pushed for rate cuts in recent months to ease federal borrowing costs and stimulate growth.
Cook's dismissal would have given him a rare FOMC majority, enabling him to appoint two more governors and potentially secure a 4-3 edge on the board, with the possibility of expanding to 5-2 after Chair Jerome Powell's term ends in 2026, strategist Craig Shapiro said.
Shapiro cautioned that such a majority could prevent regional Fed presidents from being reappointed or allow their replacement after 2026.
Earlier in the week, hedge fund manager and Trump ally Ken Griffin also warned against interference at the Fed, stressing that U.S. economic credibility, built over decades, would be difficult to restore once lost.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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