President Donald Trump intensified his campaign to reshape the Federal Reserve on Wednesday, demanding that Governor Lisa Cook resign over mortgage fraud allegations while the Justice Department reviews the case.
Trump Amplifies Mortgage Fraud Claims
Trump wrote, “Cook must resign, now!!!” on Truth Social.
Trump’s comments come after Federal Housing Finance Agency Director William Pulte alleged Cook improperly designated properties as primary residences for favorable loan terms, Reuters reported. The allegations center on mortgages Cook obtained in 2021 for properties in Michigan and Georgia, before her Fed appointment.
Cook’s financial disclosure documents show three mortgages from 2021, including loans at 2.5%, 3.25%, and 2.875% rates – competitive with market averages that ranged 2.9%-3.3% for 30-year mortgages that year, according to Mortgage Bankers Association data.
Cook Defies Pressure Campaign
“I have no intention of being bullied to step down,” Cook said in a statement, according to Reuters, adding she would “take any questions about my financial history seriously” and provide accurate information to address legitimate concerns.
The Wall Street Journal reported, citing sources, that Trump told aides he’s considering firing Cook, the first Black woman on the Fed board. However, Fed governors enjoy statutory protection from presidential removal over policy disputes.
Justice Department Takes Action
Attorney General Pam Bondi will investigate the allegations at Pulte’s request, with a Justice Department official confirming they’re taking the matter “very seriously,” according to Reuters.
Fed Independence Under Pressure
Cook was nominated by former President Joe Biden in 2022 and reappointed to a 14-year term in 2023.
Democrats condemned the attack as politically motivated. “Donald Trump is making up blatant lies in an effort to oust the first Black woman to serve on the Federal Reserve Board,” House Financial Services Democrats said on X.
The controversy comes as Cook has advocated for interest rate cuts, calling current monetary policy “restrictive” and warning that tariffs could undermine inflation progress.
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