President Donald Trump removed Federal Reserve Governor Lisa Cook from her position on Monday, effective immediately.
On Truth Social Wednesday, Trump called for Cook’s resignation after Federal Housing Finance Agency Director Bill Pulte said he would refer her to the Department of Justice (DOJ) over allegations of mortgage fraud. In a letter posted to X, Trump said he was exercising his authority under the Federal Reserve Act, alleging Cook signed documents claiming residency in two different states. (RELATED: Jerome Powell Signals Fed May Soon Cut Interest Rates)
“For example, as detailed in the Criminal Referral, you signed one document attesting that a property in Michigan would be your primary residence for the next year. Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year. It is inconceivable that you were not aware of your first commitment when making the second. It is impossible that you intended to honor both,” Trump wrote.
Chairman of the US Federal Reserve Jerome Powell speaks with Lisa Cook, member of the Board of Governors of the Federal Reserve. (Photo by SAUL LOEB/AFP via Getty Images)
“The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks. The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve,” Trump added. “In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity. At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
Cook was nominated to the Federal Reserve Board of Governors in 2022 by former President Joe Biden, reportedly at the recommendation of then-Democrat Ohio Sen. Sherrod Brown. The mortgage fraud allegations against her are not the first of their kind, as the DOJ is also investigating Democratic California Sen. Adam Schiff over similar allegations.
Tensions between Trump and the Federal Reserve had increased over the months, as Trump has repeatedly called for Fed Chairman Jerome Powell to lower interest rates.
Since Trump’s announcement of sweeping reciprocal tariffs against a handful of countries, Powell has voiced concerns about the uncertainty they could cause. On July 1, Powell told a panel that the U.S. central bank would have lowered rates by now if Trump had not imposed the tariffs.
In July, Republican Florida Rep. Anna Paulina Luna said on X that she is referring Powell to the DOJ to investigate alleged perjury related to the Fed’s more than $2 billion headquarters renovation project. The move comes after calls for Powell to be investigated began the same month, with Pulte calling on Congress to launch the investigation.
Powell’s term is expected to run through May 15. He has repeatedly said he will not step aside any sooner, according to Reuters.
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