Lisa Cook Stands Up to Trump, Resists White House Pressure
The controversy escalated when Pulte sent a letter to U.S. Attorney General Pam Bondi raising the possibility of criminal charges for fraud.
Quick overview
- Federal Reserve Governor Lisa Cook has refused to resign despite pressure from the Trump administration and a potential DOJ investigation.
- Cook is accused of declaring two properties as her primary residence to secure better mortgage terms, leading to allegations of mortgage fraud.
- She stated her intention to respond transparently to any legitimate inquiries regarding her financial history.
- Former President Trump has amplified calls for her resignation, aligning with accusations from a Trump ally who has urged for a formal investigation.
Federal Reserve Governor Lisa Cook has rejected calls to resign despite mounting pressure from the Trump administration. The U.S. Department of Justice (DOJ) is preparing to investigate her and has been urged to push for her removal.
Cook came under scrutiny after Bill Pulte, director of the Federal Housing Finance Agency (FHFA) and a Trump ally, accused her of declaring two separate properties as her “primary residence” in 2021 in order to secure more favorable mortgage terms.
In an official statement, Cook said: “I have no intention of being intimidated by questions raised in a tweet to resign from my position.” She added that she would take any legitimate inquiry into her financial history seriously and is currently “gathering the precise information” needed to respond transparently.
The controversy escalated when Pulte sent a letter to U.S. Attorney General Pam Bondi, raising the possibility of criminal charges for alleged mortgage fraud, claiming Cook falsified bank documents and property records.
Former president Donald Trump amplified the accusations on his social media platform, demanding Cook’s immediate resignation—marking the latest episode in his broader campaign against the Fed’s independence.
DOJ Investigation and Pressure on Powell
According to Bloomberg, the DOJ has notified Fed Chair Jerome Powell of the investigation. Senior DOJ official Ed Martin, who has led similar probes in the past, urged Powell to act swiftly.
In a letter to Powell, Martin wrote that Cook’s case “requires closer scrutiny” and called for her removal: “At this point, I strongly encourage you to dismiss Ms. Cook from the Board. Do it today before it’s too late! After all, no American believes it is appropriate for her to serve while a cloud hangs over her.”
Trump’s demand aligns with Pulte’s call for a formal DOJ investigation into Cook. In his letter to Bondi, Pulte alleged that Cook had falsified financial and property records to obtain favorable loan terms, potentially committing mortgage fraud under federal law.
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