Trump Demands Fed Governor Lisa Cook Resign Over Fraud Claim/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump urged Federal Reserve Governor Lisa Cook to resign after a top housing official accused her of mortgage fraud. The allegation claims Cook improperly listed two residences to secure better mortgage terms. The move intensifies Trump’s pressure campaign on the Fed, which has resisted his demands for rate cuts.
Trump vs. Fed Escalates: Quick Looks
- Trump Calls for Resignation: President demands Fed Governor Lisa Cook step down.
- Allegation: Cook allegedly claimed two homes as primary residences.
- Accuser: Bill Pulte, head of Fannie Mae and Freddie Mac oversight agency.
- Cook’s Appointment: Appointed by Biden in 2022, reappointed to term through 2038.
- Fed Silence: Federal Reserve declined comment on allegations.
- Political Context: Trump frustrated Fed hasn’t lowered interest rates.
- Potential Impact: Resignation would allow Trump to appoint rate-cut supporter.
- Past Tactics: Trump has accused Democratic figures of mortgage fraud before.
Deep Look: Trump Calls for Fed Governor Lisa Cook’s Resignation Amid Mortgage Fraud Allegations
WASHINGTON (AP) — President Donald Trump intensified his clash with the Federal Reserve on Wednesday, calling on Fed Governor Lisa Cook to resign following allegations of mortgage fraud made by one of his appointees.
The charge, if pursued, could open another front in Trump’s campaign to pressure the central bank into lowering interest rates.
The Allegations
Bill Pulte, director of the agency overseeing Fannie Mae and Freddie Mac, alleged that Cook improperly listed two homes — one in Georgia and one in Michigan — as her primary residence to secure favorable mortgage terms. Pulte urged the Justice Department to investigate the matter further.
Cook, a respected economist and the first Black woman appointed to the Fed’s governing board, was nominated by President Joe Biden in 2022 and reappointed to a long-term seat through 2038.
The Federal Reserve declined to comment on the accusations.
Political and Economic Context
The timing of the allegation underscores Trump’s increasingly combative stance toward the Fed. Since returning to office, he has demanded sharp interest rate cuts, arguing that lower borrowing costs would:
- Reduce interest payments on the $37 trillion national debt,
- Stimulate the housing market by lowering mortgage rates,
- And boost economic growth heading into an election cycle.
The Fed has so far resisted, keeping its key short-term rate around 4.3%, citing inflation risks and economic stability. Economists also note that mortgage rates do not always follow Fed rate moves directly.
If Cook were to resign, Trump would have the opportunity to nominate a replacement more aligned with his pro-rate-cut agenda.
Familiar Political Strategy
The allegation fits a broader pattern: Trump and his allies have previously used mortgage fraud accusations to target political opponents, including Sen. Adam Schiff (D-CA) and New York Attorney General Letitia James, both frequent Trump adversaries.
Supporters say this reflects Trump’s commitment to rooting out misconduct in public office, while critics argue the strategy is politically motivated, designed to discredit opposition figures and consolidate influence over institutions like the Fed.
What’s Next?
With no immediate response from Cook or the Fed, the allegations remain unproven. Whether the Justice Department pursues an investigation will determine if the matter escalates into a legal fight or remains largely a political battle.
Meanwhile, Wall Street is watching closely: any shake-up at the Fed could shift the direction of monetary policy at a time when investors are already anticipating potential rate cuts.
You must Register or Login to post a comment.