Trump pressures another top Fed official to resign

US President Donald Trump has called for the resignation of Federal Reserve Governor, Lisa Cook after allegations surfaced that she may have committed mortgage fraud.

The claims were raised in a letter dated August 15 from Bill Pulte, director of the Federal Housing Finance Agency and a close ally of Trump, who urged the Justice Department to investigate mortgages Cook took out in recent years.

On Wednesday, Trump amplified the allegations on his social media platform, writing that “Cook must resign, now!!!”

Pulte has been a frequent critic of the Fed and its chair, Jerome Powell, particularly for not lowering interest rates.

Speaking to CNBC, he said: “She needs to explain herself, but it’s all there in black and white. I think she needs to resign quickly.”

Pulte’s letter, which he also posted online, claimed Cook, a Biden appointee, “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”

According to Pulte, Cook took out a mortgage in June 2021 for a property in Ann Arbor, Michigan, declaring it as her primary residence for at least a year.

Two weeks later, she allegedly obtained another mortgage in Georgia, also declaring it as her main residence. Pulte said that the Georgia property was later listed as a rental.

Pulte rejected suggestions that his actions were politically driven. “There can be no mortgage fraud. This came across our desk, and it’s my duty to report it. It wouldn’t matter if she were a Republican or a Democrat. It is what it is,” he told CNBC.

The Fed has not commented on the allegations.

The push against Cook comes as Trump continues to pressure the Fed, urging it to lower interest rates and criticising Powell with the nickname “Too Late.” While the central bank raised rates in recent years to combat high inflation, it has since paused cuts to assess the effect of Trump’s tariffs.

Cook’s future is under scrutiny just as the Senate Banking Committee prepares to consider Trump’s nominee, Stephen Miran, to fill the vacancy left by Fed Governor Adriana Kugler, who recently stepped down.

Analysts say Cook’s possible resignation would not significantly alter the Fed’s policymaking, as its rate-setting committee includes a wider membership than just board governors. Still, her departure would reduce the number of Democratic appointees on the board to two out of seven.

The latest clash over Cook comes as Fed officials meet in Jackson Hole, Wyoming, for their annual economic symposium. Powell is expected to hint at possible rate cuts later this year, with markets predicting a strong chance of one at the September meeting.

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