On Wednesday, President Donald Trump urged Federal Reserve Governor Lisa Cook to step down following allegations of mortgage fraud against her.
Bill Pulte, who chairs the Federal Housing Financing Agency (FHFA), sent a letter to Attorney General Pam Bondi, alleging that Cook may have “falsified bank documents and property records to secure better loan conditions, potentially engaging in mortgage fraud as defined by criminal law.”
According to Pulte’s letter, Cook secured a mortgage in Michigan claiming it was for her primary residence, while also obtaining a loan for a condo in Atlanta, Georgia, which was similarly labeled as her primary home.
Trump took to Truth Social, stating, “Cook must resign, now!!!”
Axios reported that this investigation seems to be part of an effort by Trump’s allies to establish grounds for dismissing Federal Reserve governors, aligning with the president’s aim to install central bank leaders inclined to reduce interest rates and be more aligned with his views.
The Trump administration has actively pursued Democrats over allegations of mortgage fraud, targeting figures like Senator Adam Schiff (D-CA) and New York Attorney General Letitia James.
Bloomberg reported:
At present, no formal charges have been brought, and it remains uncertain if Bondi will initiate an investigation. The Justice Department and the Federal Reserve have both declined to comment, while Cook did not reply to inquiries on Tuesday night.
A resignation would create another opening for Trump on the Fed board, as Trump orchestrates a pressure campaign to cut rates. The president has explicitly said that he’ll only pick a new chair who agrees that rates should come down, a demand that strikes at the heart of the central bank’s independence.
Cook gave a presentation in support of a bill that would create a commission to study and develop reparations proposals.
The Federal Reserve nominee also agreed with calls to have the Federal Reserve focus on targeting its federal funds rate to improve the black unemployment rate instead of the national employment rate.
Cook also called on the University of Chicago to fire its economics professor, Harald Uhlig, in June 2020 after Uhlig criticized the Black Lives Matter movement for its support of defunding the police. Cook accused Uhlig of “racial harassment.”
She claimed that “free speech has its limits.”
