Lisa Cook, Member of the Federal Reserve Board of Governors, speaks with Chairman Jerome Powell before the Board’s open session on June 25, 2025, in Washington, D.C. Image: Mark Schieflbein.
(The Post News)– According to reports, U.S. President Donald Trump has demanded Lisa Cook resign as the Federal Reserve governor faces allegations of potential mortgage fraud. On Wednesday, Trump called on Cook to step down, intensifying his pressure on the central bank’s leadership.
He posted on Truth Social, declaring that Cook needs to resign effective immediately, as he renewed his attacks on the Federal Reserve for resisting his push to cut interest rates. Trump’s call reflects his ongoing effort to reshape the central bank’s leadership.
Cook Urged to Resign Amid Fraud Allegations
In a letter to Attorney General Pam Bondi, William Pulte, director of the U.S. Federal Housing Finance Agency and a known Trump ally, accused Cook of misconduct. Pulte claimed that in 2021, Cook submitted mortgage applications listing both a Michigan home and a Georgia condominium as primary residences, even though she leased out the Atlanta property.
He alleged that she altered bank documents and property records to obtain favorable loan terms. He further called for an investigation into possible mortgage fraud.
Meanwhile, Cook has denied the allegations, noting that she only found out about them on social media. Cook described the accusations as politically motivated. She said she is not planning on resigning over “issues raised on social media.”
Cook emphasized her commitment to addressing questions about her financial history responsibly while gathering accurate information to clarify the allegations.
Federal Reserve Clash
Trump’s demand ties into his broader conflict with Federal Reserve policy. He has criticized Fed Chair Jerome Powell for maintaining interest rates, while Fed officials argue that Trump’s tariff strategy could push prices higher.
If Cook leaves, Trump would gain leverage to shape the Fed board, especially as the Senate considers Stephen Miran to fill the vacancy left by Biden appointee Adriana Kugler. This shift could tilt the seven-member board toward Trump’s economic agenda.
Currently, Trump has focused his criticism on Cook during the Fed’s annual gathering in Jackson Hole, Wyoming. Looking ahead, Powell is scheduled to speak Friday, and analysts expect him to outline the Fed’s economic outlook.
Policymakers anticipate that the board may cut interest rates by at least 25 basis points (0.25%) at its September meeting in response to slowing job growth. The controversy over Cook’s role underscores the high-stakes political battle surrounding the future direction of U.S. monetary policy.
About the Author
