On Wednesday, President Donald Trump urged Federal Reserve Governor Lisa Cook to resign following allegations against a member of a mortgage fraud committee.
Bill Palto, who heads the Federal Housing Finance Agency (FHFA), informed Attorney General Pam Bondy that “Cook could manipulate bank documents and property records to secure more favorable loan conditions and commit mortgage fraud in violation of criminal law.”
Reportedly, Cook obtained a mortgage for her primary residence in Michigan and later secured a loan for a condominium in Atlanta, Georgia.
On Truth Social, Trump stated, “The chef must resign, now!!!”
According to Axios, the investigation seems to involve Trump’s supporters, who mentioned, “We are filing a lawsuit against Fed Governors as the president aims to lower interest rates and influence a central bank that aligns more closely with his views.”
The Trump administration has accused Democrats of mortgage fraud, targeting figures like Senator Adam Schiff (D-CA) and New York Attorney General Letitia James.
It has been reported that no formal claims have been filed, and it’s uncertain if Bondi will pursue an investigation. The Department of Justice and the Federal Reserve both declined to comment. Cook has not responded to requests for comments made late Tuesday.
If Cook resigns, it would open another position for Trump on the Fed Committee, especially as he seeks to adjust his tactics for lowering interest rates. The president has made it clear he will only appoint new chairs who agree that prices need to be reduced.
During her confirmation process with the Fed, Cook faced significant criticism from Senate Republicans. In April 2022, it was reported that she supported legislation aimed at establishing a committee to explore and develop compensation proposals.
Fed candidates also supported calls for the Federal Reserve to adjust federal funding rates and focus on addressing black unemployment rather than national employment figures. In June 2020, Cook called for the University of Chicago to dismiss professor Harald Urig after he criticized the Black Lives Matter movement. Cook accused Urig of “racial harassment.”
She argued that “free speech is limited.”
