President Donald Trump has issued a warning to Federal Reserve Governor Lisa Cook, threatening to dismiss her if she does not resign amidst allegations of mortgage fraud.
This latest attack on the US central bank follows Trump’s continued criticism over their reluctance to lower interest rates and recent developments regarding significant improvements in Washington, DC.
“What she did was a bad thing, so if she doesn’t resign, I’ll fire her,” Trump stated to reporters on Friday.
Trump’s comments came in light of accusations made by Bill Pulte, director of the federal housing finance agency, who claimed in a letter to Attorney General Pam Bondi that Cook manipulated bank documents and property records to obtain favorable loan terms.
Trump’s allies also raised concerns on social media about Cook designating an Atlanta condo as her primary residence while securing loans on a property in Michigan.
Pulte indicated on Friday that he is investigating Cook’s residence in Massachusetts, mentioning, “I’m looking into the third property to see what’s there.”
Bloomberg noted that the Department of Justice is expected to start looking into these allegations.
Pulte expressed in an interview that he believes there is a “sufficient cause” for the president to consider firing Cook.
Removing members from the Federal Reserve usually requires proving “cause,” which implies some form of fraud.
Previously, Trump had called for Cook’s resignation, to which she responded that she had no intention of stepping down. “I’m not going to be bullied into resigning just because questions have been raised,” Cook asserted.
Her financial disclosures reveal three mortgages, including two loans on private homes and a loan on an investment property with specific rates secured in 2021.
According to the Mortgage Bankers Association, the average mortgage rates for 30-year loans in 2021 varied between 2.9% and 3.3%.
If Cook were to be removed, it would leave another seat vacant at the Fed that could be filled by Trump’s appointees.
In the upcoming months, Trump is anticipated to nominate a new chair and another governor for the Federal Reserve, both of whom will contribute to the decision-making body of the pricing committee.
Currently, Trump’s appointees Michelle Bowman and Christopher Waller are part of the board. Recently, Adriana Couglar stepped down from the Fed board, and Stephen Miran was appointed as her replacement, acting as the president’s economic adviser.
