Federal Reserve governor Lisa Cook on Wednesday defied President Donald Trump’s calls for her to resign in light of accusations that she had committed mortgage fraud.
Cook was appointed by former President Joe Biden to sit on the Fed, making her one of the 12 people who control the direction of interest rates, which Trump has pressured the central bank for months to lower to no avail.
This week, Federal Housing Finance Agency Director Bill Pulte revealed he had asked the Department of Justice to investigate Cook after his investigation concluded that it appeared she had committed mortgage fraud, leading Trump on Wednesday to call on the Fed governor to step down from her position in a post to Truth Social.
Cook slapped down the president’s demands the same day, saying she has “no intention of being bullied to step down from my position because of some questions raised in a tweet.”
“I do intend to take any questions about my financial history seriously as a member of the Federal Reserve, and so I am gathering the accurate information to answer any legitimate questions and provide the facts,” she added.
In a letter to the DOJ recommending Cook for criminal referral, Pulte said it appears she “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
“This has included falsifying residence statuses for an Ann Arbor, Michigan-based residence and an Atlanta, Georgia-based property in order to potentially secure lower interest rates and more favorable loan terms,” Pulte wrote.
THE FED OFFICIAL WHO CORRECTLY PREDICTED INFLATION COULD FALL WITHOUT A RECESSION
Should Cook leave the Fed’s governing board, it would provide Trump an opportunity to appoint a member who would support his goal of cutting interest rates, which Chairman Jerome Powell has repeatedly declined to do.
“Powell has a chance to do the right thing by the law,” regarding Cook, Pulte said in vague remarks about the chairman’s role in the affair during an CNBC interview this week, adding that “we’ll see” whether Powell knew about Cook’s mortgages.
