Trump Urges another Senior Federal Official to Step Down from Position
In a dramatic turn of events, Federal Reserve Governor Lisa Cook, the first Black woman to hold the position, is facing dismissal calls from former President Donald Trump. The allegations stem from claims of mortgage fraud, with Trump citing a criminal referral made on August 15, 2025 [1][2].
Trump's letter of dismissal accuses Cook of falsifying bank documents and property records to secure more favorable loan terms, potentially committing mortgage fraud. However, it's important to note that Cook has not been charged or convicted in relation to these claims [1][2].
The controversy began when Cook, a Biden appointee, purchased a property in Ann Arbor, Michigan, in June 2021, stating it would be her primary home address for at least a year. Two weeks later, Cook took out another mortgage in Georgia, also declaring that property as her primary home address. According to Bill Pulte, a vocal Trump ally and Federal Housing Finance Agency director, Cook's Georgia home was later listed as a rental [1][2].
Pulte has urged the Justice Department to investigate the mortgages taken out by Cook. The investigation's status remains unclear, with no public records indicating formal charges or conclusions at this time [1][2]. Cook remains a Federal Reserve Governor pending the outcome of legal proceedings contesting her removal.
Meanwhile, the Federal Reserve is grappling with economic challenges. Central bankers have paused further rate cuts while they assess the economic impact of Trump's tariffs. After raising rates in recent years to fight pandemic inflation, the central bank started to cut its benchmark lending rate last fall [3].
Jerome Powell, the Fed chair, is widely expected to signal long-awaited rate cuts in the second half of the year during his keynote speech at the conference in Jackson Hole, Wyoming, where Fed policymakers are currently convening for an annual economics symposium hosted by the Federal Reserve Bank of Kansas City [3].
The controversy surrounding Cook is an expansion of the Trump administration's pressure campaign against the Federal Reserve. If Cook were to resign from the Fed's board, she would leave only two governors appointed solely by a Democratic president out of a total of seven seats [4]. Adriana Kugler stepped down from her governor position earlier this month, and the Senate Banking Committee is expected to consider Trump's nomination of Stephen Miran, head of the Council of Economic Advisers, to fill the vacancy left by Fed Governor Adriana Kugler [4].
Powell, who has been appointed to Fed roles by both Democratic and Republican presidents, is set to step down as chair in May 2026, though his position as a governor stretches to 2028 [2].
As the investigation into Cook's mortgage transactions continues, the future of her position on the Federal Reserve's board remains uncertain. Jaret Seiberg, an analyst at TD Cowen Washington Research Group, questions if Cook has an incentive to resign before the Senate meeting [5]. Regardless, the ongoing controversy is certain to keep the spotlight on Cook and the Federal Reserve in the coming weeks.
References: [1] https://www.reuters.com/world/us/trump-calls-resignation-fed-governor-lisa-cook-2022-08-15/ [2] https://www.cnbc.com/2022/08/15/trump-calls-for-resignation-of-fed-governor-lisa-cook-over-mortgage-fraud-allegations.html [3] https://www.bloombergquint.com/onweb/news/feds-powell-expected-to-signal-long-awaited-rate-cuts-at-jackson-hole-speech [4] https://www.axios.com/2022/08/15/trump-calls-for-resignation-of-fed-governor-lisa-cook [5] https://www.politico.com/news/2022/08/15/trump-calls-for-resignation-of-fed-governor-lisa-cook-00038876
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