The Fed has been at war with Trump. But now the leverage is all the president’s.
Because shocking allegations surfaced against a high profile Fed official that changes everything.
Trump Calls for Federal Reserve Governor Lisa Cook’s Resignation Over Alleged Mortgage Fraud
President Donald Trump demanded the resignation of Federal Reserve Governor Lisa Cook on August 20, following allegations of mortgage fraud raised by Federal Housing Finance Agency (FHFA) Director Bill Pulte.
In a Truth Social post, Trump wrote, “Cook must resign, now!!!” amplifying Pulte’s claims that Cook falsified residency statuses for properties in Ann Arbor, Michigan, and Atlanta, Georgia, to secure favorable loan terms in 2021.
Pulte’s August 15 letter to Attorney General Pam Bondi, shared on X, alleges that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute,” citing dual primary residence declarations.
Allegations and Political Response
Pulte, a Trump ally, escalated the accusations on X, stating, “How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?” He emphasized that “mortgage fraud is a serious crime and must be prosecuted as such.”
Senator Rick Scott (R-Fla.) supported the probe, posting on X that the “lack of accountability at the Federal Reserve under Chair Jerome Powell is out of control” and urging passage of his bill for an independent Fed inspector general. Cook, appointed by President Joe Biden in 2022 and reappointed for a term until 2038, has not publicly responded.
A Federal Reserve spokesperson told The Daily Wire, “We don’t have anything to share at the moment, but will be back in touch asap.”
Trump’s Feud with the Federal Reserve
The allegations align with Trump’s campaign to influence the Federal Reserve, which he has criticized for maintaining high interest rates.
On August 19, Trump posted on Truth Social, “Could somebody please inform Jerome ‘Too Late’ Powell that he is hurting the Housing Industry, very badly? People can’t get a Mortgage because of him.”
Cook’s financial disclosures show three 2021 mortgages: a 15-year 2.5% loan on an investment property, a 30-year 3.25% mortgage, and a 15-year 2.875% mortgage for residences, consistent with 2021 market rates of 2.9% to 3.3%, per Mortgage Bankers Association data.
Democrats, including Senator Elizabeth Warren, condemned the accusations as an attempt to “weaponize the federal government to illegally fire independent Fed Board members.”
Investigation and Additional Context
The Justice Department is reviewing Pulte’s referral, though proving criminal liability may be challenging, as mortgage lenders often know the true status of properties, a source told Reuters. Similar fraud allegations have targeted Democrats like Senator Adam Schiff and New York Attorney General Letitia James, both denying wrongdoing.
X posts reflect polarized sentiment, with users like @texan_maga claiming “they’ve ALL been doing it,” while others, like @BostonGlobe, note the allegations remain unconfirmed. If Cook resigns, Trump could nominate another ally, following his recent appointment of Stephen Miran to replace former Governor Adriana Kugler.
