Trump Demands Fed Governor Resign: A Biden Nominee, Lisa Cook Faces Same Criminal Mortgage Fraud Accusations as Letitia James
President Donald Trump is taking aim at another member of the Federal Reserve board, demanding the resignation of Biden-appointee Lisa Cook over allegations she committed mortgage fraud.
"Cook must resign, now!!!" President Donald Trump posted Wednesday morning on Truth Social.
Amid the public warning, Trump has reportedly privately told aides he is weighing firing Cook, escalating his administration's clash with the Federal Reserve, according to The Wall Street Journal on Wednesday.
Trump's call could add to his administration's ability to remake the Federal Reserve Board.
Such an action would test long-standing protections for Fed governors. Under a 1935 law, they can only be removed "for cause," typically interpreted as malfeasance or neglect of duty. The Supreme Court underscored those protections in a May ruling, noting the Fed's "uniquely structured, quasi-private" design places its officials outside the president's direct reach, the Journal reported.
Housing Finance Agency Director Bill Pulte said Wednesday his agency is looking into property owned by Cook in Massachusetts as part of a probe into allegations about mortgages Cook holds in Michigan and Georgia.
"We're also probing some property that she has in Massachusetts to see if there's something there, but I don't have anything yet on that," Pulte told CNBC in an interview Wednesday.
Cook, brought aboard by former President Joe Biden as the first African American woman and first woman of color to sit on the board, is the latest Democrat targeted for a mortgage fraud investigation.
Pulte, a staunch ally of Trump, has called on Attorney General Pam Bondi to investigate Cook over a pair of mortgages, Bloomberg reported Wednesday.
Cook, whose background includes work with a DEI (diversity, equity, and inclusion) initiative, the American Economic Association Summer Program, joins the likes of Sen. Adam Schiff, D-Calif., and New York Attorney General Letitia James, both longtime Trump antagonists, in being investigated for similar allegations of mortgage fraud.
In an Aug. 15 letter to Bondi and Justice Department official Ed Martin, Pulte alleged Cook falsified bank documents and property records to secure more favorable loan terms, potentially committing mortgage fraud. A copy of the letter was reviewed by Bloomberg.
According to documents included in the referral, Cook took a $203,000 mortgage on a property in Ann Arbor, Michigan, on June 18, 2021. The loan stipulated she would occupy it as her primary residence for at least one year. Two weeks later, she secured a $540,000 mortgage on a Georgia property, which carried the same requirement. Pulte alleged Cook later listed the Georgia home for rent, suggesting it was intended as an investment property rather than a residence. The letter cited four federal statutes for potential violations.
No charges have been filed, and it remains unclear whether Bondi will investigate.
None of the parties involved has responded to Bloomberg's request for comment, including the Justice Department, Federal Reserve, and Cook.
Cook was reappointed under Biden to a full term expiring in 2038. Her tenure comes as Trump allies intensify pressure on Fed Chair Jerome Powell to cut interest rates and consider stepping down before his term ends next May.
The probe call follows the surprise resignation of Fed Governor Adriana Kugler, another Biden appointee. Trump has already moved to install economic aide Stephen Miran on an interim basis, giving him an early chance to shift the central bank's direction.
"Cook must resign, now!!!" President Donald Trump posted Wednesday morning on Truth Social.
Amid the public warning, Trump has reportedly privately told aides he is weighing firing Cook, escalating his administration's clash with the Federal Reserve, according to The Wall Street Journal on Wednesday.
Trump's call could add to his administration's ability to remake the Federal Reserve Board.
Such an action would test long-standing protections for Fed governors. Under a 1935 law, they can only be removed "for cause," typically interpreted as malfeasance or neglect of duty. The Supreme Court underscored those protections in a May ruling, noting the Fed's "uniquely structured, quasi-private" design places its officials outside the president's direct reach, the Journal reported.
Housing Finance Agency Director Bill Pulte said Wednesday his agency is looking into property owned by Cook in Massachusetts as part of a probe into allegations about mortgages Cook holds in Michigan and Georgia.
"We're also probing some property that she has in Massachusetts to see if there's something there, but I don't have anything yet on that," Pulte told CNBC in an interview Wednesday.
Cook, brought aboard by former President Joe Biden as the first African American woman and first woman of color to sit on the board, is the latest Democrat targeted for a mortgage fraud investigation.
Pulte, a staunch ally of Trump, has called on Attorney General Pam Bondi to investigate Cook over a pair of mortgages, Bloomberg reported Wednesday.
Cook, whose background includes work with a DEI (diversity, equity, and inclusion) initiative, the American Economic Association Summer Program, joins the likes of Sen. Adam Schiff, D-Calif., and New York Attorney General Letitia James, both longtime Trump antagonists, in being investigated for similar allegations of mortgage fraud.
In an Aug. 15 letter to Bondi and Justice Department official Ed Martin, Pulte alleged Cook falsified bank documents and property records to secure more favorable loan terms, potentially committing mortgage fraud. A copy of the letter was reviewed by Bloomberg.
According to documents included in the referral, Cook took a $203,000 mortgage on a property in Ann Arbor, Michigan, on June 18, 2021. The loan stipulated she would occupy it as her primary residence for at least one year. Two weeks later, she secured a $540,000 mortgage on a Georgia property, which carried the same requirement. Pulte alleged Cook later listed the Georgia home for rent, suggesting it was intended as an investment property rather than a residence. The letter cited four federal statutes for potential violations.
No charges have been filed, and it remains unclear whether Bondi will investigate.
None of the parties involved has responded to Bloomberg's request for comment, including the Justice Department, Federal Reserve, and Cook.
Cook was reappointed under Biden to a full term expiring in 2038. Her tenure comes as Trump allies intensify pressure on Fed Chair Jerome Powell to cut interest rates and consider stepping down before his term ends next May.
The probe call follows the surprise resignation of Fed Governor Adriana Kugler, another Biden appointee. Trump has already moved to install economic aide Stephen Miran on an interim basis, giving him an early chance to shift the central bank's direction.
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