Federal Reserve Governor Lisa Cook is under intense political pressure after the U.S. Department of Justice received a criminal referral related to alleged mortgage fraud. President Donald Trump has openly demanded her resignation, escalating tensions between the White House and the central bank.
Criminal referral sparks investigation
The referral originated from the Federal Housing Finance Agency (FHFA), alleging that Cook misrepresented her residence status to obtain favorable mortgage terms on properties in Michigan and Georgia. The DOJ has not yet confirmed whether a formal investigation has begun, but the matter is being reviewed.
Trump calls for resignation
Trump quickly seized on the allegations, declaring that “Cook must resign, now” and signaling he might consider firing her “for cause.” His intervention has fueled concerns over political interference in the Federal Reserve’s independence.
Cook rejects pressure
Cook dismissed the resignation demands, saying she will not be “bullied” out of office. She pledged to provide accurate records to address the concerns and insisted she will continue fulfilling her duties as a Fed Governor.
Fed independence at stake
Democratic lawmakers, including Senator Elizabeth Warren, condemned Trump’s calls as politically motivated. Cook, the first Black woman appointed to the Fed Board, was nominated by President Biden and confirmed in a narrow Senate vote. The standoff highlights the fragile balance between political power and central bank autonomy.
Sources
- Bloomberg – Trump Presses Fed’s Cook to Quit After Mortgage Fraud Allegation
- Reuters – Trump calls on Fed Governor Cook to resign over mortgage allegations
- AP – Fed official says she won’t be ‘bullied’ by Trump into resigning
- Wall Street Journal – Trump Considers Firing Fed Official After Accusation
- The Guardian – Trump calls on Fed Governor Lisa Cook to resign
