President Donald Trump on Wednesday urged Federal Reserve Governor Lisa Cook to resign after a housing official aligned with the administration alleged she engaged in mortgage fraud and urged a federal investigation.
Bill Pulte, whom Trump appointed in March to run the U.S. Federal Housing Finance Agency, posted on X that Cook had committed mortgage fraud by designating two different homes as her primary residence. He also supplied an August 15 letter to Attorney General Pam Bondi and a Department of Justice official outlining the allegations, saying the documents obtained by the agency show Cook allegedly falsified bank and property records to obtain more favorable loan terms.
Pulte claims that in June 2021 Cook pledged in a mortgage agreement to make an Ann Arbor, Michigan property her primary residence for at least a year, but two weeks later purchased an Atlanta condominium that she allegedly also planned to designate as a primary residence for a year. Mortgage terms for primary residences are typically lower than those for second homes or investment properties, the industry notes.
Trump reacted by writing on Truth Social that “Cook must resign, now!!!” He has also told aides he is considering firing Cook, according to the Wall Street Journal, which cited a senior White House official and another person familiar with the matter. Pulte called on Cook to resign and said he expects the Justice Department to open a criminal probe.
The White House declined to comment further.
Cook has said she will not quit. In a Fed-issued statement, she said she has no intention of being bullied into stepping down because of questions raised in a tweet. She added that she intends to take any questions about her financial history seriously as a member of the Federal Reserve and is gathering accurate information to answer legitimate questions.
The dispute comes as President Trump has pressed for easier monetary policy, repeatedly urging the Fed to cut interest rates and criticizing Chairman Jerome Powell for the central bank’s cautious approach. Cook sits on the Federal Open Market Committee, the 12-member panel that votes on rate moves.
There is also political maneuvering around the Fed’s leadership. Trump has sought confirmation of Stephen Miran to the Fed’s Board of Governors, appointing him to serve on an interim basis following the resignation of Gov. Adriana Kugler. Analysts note that removing Cook and installing Miran would not materially change the FOMC’s makeup in the near term, and a Senate confirmation could be difficult before the Fed’s next rate decision on Sept. 17 due to the Senate’s schedule.
Markets remain poised for a rate cut, with economists signaling an 88% chance of a cut on Sept. 17, according to FactSet. Still, analysts caution that Cook’s potential departure would not automatically alter the policy outlook or the timing of the next decision.
Cook joined the Fed’s Board of Governors in May 2022. Before that, she was an economics professor at Michigan State University and has taught at Harvard University’s Kennedy School of Government. She also served as a senior economist on the Council of Economic Advisers under President Obama.
Commentary and context:
– The episode underscores ongoing scrutiny of the Fed’s leadership and potential political pressure around monetary policy.
– If the allegations were substantiated, they could trigger official investigations and erode confidence in regulatory independence; if not, they may intensify debates about ethics disclosures and personal financial history for central-bank figures.
– The case could influence market expectations, though most analysts view the Fed’s current policy path as driven by a broad set of data and committee dynamics beyond any single member.
Summary:
A confrontation over alleged mortgage improprieties involving a high-profile Fed governor has entered the political arena, with Trump demanding resignation and a prominent housing official publicly asserting the accusations. Cook defends her integrity and signals a commitment to transparency, while the Fed and Capitol Hill navigate whether and how the matter could affect the central bank’s policy course in the upcoming September meeting. A review of the facts and any resulting investigations will determine the longer-term implications for the Fed’s independence and the administration’s economic agenda. Positive note: the situation highlights a push for accountability and due process in high-level financial oversight, which, if resolved with full transparency, could reinforce trust in the system.