President Trump on Wednesday called on Federal Reserve Governor Lisa Cook to resign on the basis of allegations made by one of his political allies about mortgages she holds in Michigan and Georgia, intensifying his effort to gain influence over the central bank.
Cook said she had “no intention of being bullied to step down” from her position at the central bank after Federal Housing Finance Agency Director William Pulte raised the allegations in a tweet.
“I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts,” she said in a statement.
The Federal Housing Finance Agency urged the Justice Department to probe Fed Governor Lisa Cook over alleged mortgage fraud. AFP via Getty ImagesTrump has also told aides he is considering attempting to fire her, the Wall Street Journal reported on Wednesday, citing a senior White House official and another person familiar with the matter. Reuters could not immediately verify the report.
Trump has also told aides he is considering trying to fire Cook, the first Black woman to serve on the Fed board, the Wall Street Journal reported on Wednesday, citing a senior White House official and another person familiar with the matter. Reuters could not immediately verify the report.
The White House declined to comment on the WSJ report.
Pulte alleged in a post on X earlier on Wednesday that Cook had designated a condo in Atlanta as her primary residence after taking a loan on her home in Michigan, which she also declared as a primary residence. Pulte told CNBC he is also probing property Cook has in Massachusetts.
Loans for a primary residence can carry easier terms than for second homes or investment properties. Pulte said the loans date to mid-2021, before Cook was appointed to the Fed by former President Joe Biden and confirmed by the Senate the following year.
She is a native of Georgia and at the time was an economics professor at Michigan State University.
Pulte asked Attorney General Pam Bondi to investigate, and Trump quickly amplified the allegation. The Justice Department was taking the matter very seriously, a department official told Reuters.
FHFA Director Bill Pulte alleged in a post on X that Cook had designated a condo in Atlanta as her primary residence after taking a loan on her home in Michigan, which she also declared as a primary residence. Bloomberg via Getty ImagesDemocrats on the House of Representatives Committee on Financial Services blasted Trump’s attack on Cook and vowed to fight it.
Cook’s federally filed financial disclosure documents show three mortgages taken out in 2021, including a 15-year 2.5% loan on an investment property and two loans for personal residences, including a 30-year 3.25% mortgage and a 15-year 2.875% mortgage. The weekly average rate for 30-year loans during 2021 ranged between 2.9% and 3.3%, Mortgage Bankers Association data shows. Cook started at the Fed in 2022 and was reappointed to a 14-year term in 2023.
“Cook must resign, now!!!” Trump wrote in a post on his social media platform in his latest comments aimed at reshaping the make-up of the central bank, a body designed to set benchmark interest rates independent of White House influence.
Cook is one of three Biden appointees to the Fed whose terms extend beyond Trump’s time in office, complicating the president’s efforts to get more control by appointing a majority of its seven-member board. Currently two of the Fed’s remaining six board members were appointed by Trump, Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman.
Trump has repeatedly blasted Fed Chair Jerome Powell over benchmark rates that he wants sharply reduced, calling for his resignation while acknowledging that the Fed’s unique status in U.S. governance prevents him from firing Fed board members over monetary policy disputes.
“Cook must resign, now!!!” President Trump wrote in a post on his social media platform in his latest comments aimed at reshaping the make-up of the US central bank. APTrump can name a new chair when Powell’s term ends in May, but claiming a majority on the board may take more time. Powell could continue serving as a governor until 2028, near the end of Trump’s term, should he buck convention and continue sitting on the board under a new chair.
Until Powell’s departure, Trump at this point has only one other seat to fill, vacated recently by the surprise resignation of former Governor Adriana Kugler. Earlier this month Trump nominated Council of Economic Advisers Chairman Stephen Miran to serve out the rest of her term.
