President Donald Trump has called for Federal Reserve Governor Lisa Cook to resign immediately following allegations that she made false statements on mortgage applications. This marks an expansion of Trump’s pressure campaign against the Federal Reserve as he pushes for lower interest rates.
“Cook must resign, now!!!” Trump wrote Wednesday on his Truth Social platform, responding to claims made by Federal Housing Finance Agency (FHFA) Director Bill Pulte.
Pulte, a Trump ally who oversees mortgage giants Fannie Mae and Freddie Mac, sent a letter to the Justice Department on August 15 requesting a criminal investigation into Cook. He alleges Cook committed mortgage fraud by declaring two different properties as her primary residence around the same time in 2021.
According to Pulte’s letter, Cook took out a mortgage for a property in Ann Arbor, Michigan, stating it would be her primary home for at least a year. Two weeks later, she reportedly took out another mortgage for a condo in Atlanta, Georgia, also declaring it as her primary residence. The Georgia property was later listed as a rental.
“She needs to explain herself, but it’s all there in black and white,” Pulte told CNBC. “I think she needs to resign quickly.”
Lenders typically offer better interest rates and terms for primary residences compared to second homes or investment properties, which explains why the designation matters.
The Federal Reserve declined to comment on the allegations, and the White House has not immediately responded to requests for comment.
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Cook, who was appointed by former President Biden in 2022 and reappointed to a 14-year term in 2023, is the first Black woman to serve on the Fed’s Board of Governors. She voted with the majority on the Federal Open Market Committee to keep interest rates unchanged at their last meeting in July.
The timing of this pressure campaign comes as the Fed is expected to consider cutting interest rates at its next meeting in September. Financial markets are currently pricing in a high chance of a rate cut then, as the labor market has shown signs of cooling.
Trump has repeatedly criticized Fed Chair Jerome Powell, dubbing him “Too Late” for not cutting rates faster. After raising rates to fight inflation that reached 40-year highs in 2022, the Fed started cutting rates last fall but has paused since December. Inflation remains above the Fed’s 2% target.
Trump already has one opportunity to reshape the Fed after Governor Adriana Kugler’s surprise resignation earlier this month. He has nominated White House economic adviser Stephen Miran to fill that vacancy.
If Cook were to resign, it would create another opening for Trump to appoint someone aligned with his views on monetary policy. Currently, only two governors appointed solely by Democratic presidents would remain on the seven-member board.
However, analysts doubt Cook will step down before the September meeting. “For Cook, resigning will not end the legal probe. It is why we see no incentive for her to react to Pulte by departing,” wrote Jaret Seiberg of TD Cowen Washington Research Group.
Fed governors serve 14-year terms and can only be removed “for cause,” which typically means serious misconduct. Cook’s term is set to expire in 2038.
According to reporting by Al Jazeera, a DOJ official told Reuters the matter was being taken “very seriously,” though no formal investigation has been announced.
