Donald Trump Calls for Fed Governor Lisa Cook’s Resignation
This is not the first time the Trump administration has accused high-profile Democrats of mortgage fraud.
Quick overview
- Federal Reserve Governor Lisa Cook faces scrutiny over alleged mortgage fraud, prompting calls for an official investigation.
- President Trump has demanded Cook's resignation, supporting FHFA Director Bill Pulte's request for a Department of Justice probe.
- Pulte alleges Cook may have falsified documents to secure better loan terms, potentially violating federal law.
- Global markets are cautious ahead of the Federal Reserve's Jackson Hole conference, with concerns about technology stocks and AI bubbles.
Federal Reserve Governor Lisa Cook has come under scrutiny over alleged “mortgage fraud,” following a call from the head of the Federal Housing Finance Agency (FHFA) for an official investigation.
On Wednesday, U.S. President Donald Trump demanded Cook’s resignation, echoing FHFA Director Bill Pulte’s request that the Department of Justice probe the matter. Pulte, a close ally of Trump, sent a letter to Attorney General Pam Bondi urging her to investigate Cook.
According to Bloomberg, Pulte suggested Cook may have committed a criminal offense, alleging she “falsified banking documents and property records to obtain more favorable loan terms, potentially committing mortgage fraud under federal criminal statute.”
This is not the first time the Trump administration has accused high-profile Democrats of mortgage fraud. Similar allegations have been leveled against California Senator Adam Schiff and New York Attorney General Letitia James.
No charges have been filed, and neither the Justice Department, the Federal Reserve, nor Cook herself have issued a comment. Cook, appointed to the Fed by President Joe Biden in 2022, was later nominated for a full term expiring in 2038.
General Outlook – Federal Reserve
Meanwhile, global markets remained cautious, with major Wall Street indexes trading lower in pre-market activity—a trend mirrored in parts of Europe and Asia. Investor sentiment is subdued ahead of the Federal Reserve’s annual Jackson Hole conference, while mounting concerns about technology stocks and a potential artificial intelligence bubble add to market jitters.
On Monday, OpenAI CEO Sam Altman remarked on the “inevitable bubbles” in the AI sector, a statement that came just days before Nvidia’s quarterly earnings report and amid questions over the implications of possible U.S. government involvement in Intel.
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