UPDATE: President Donald Trump has issued a stark warning to Federal Reserve Governor Lisa Cook, threatening to fire her if she does not resign. This urgent development comes in the wake of serious allegations of mortgage fraud linked to Cook, as confirmed by Trump during a press conference on August 22.
Trump stated emphatically, “What she did was bad, so I’ll fire her if she doesn’t resign,” following a criminal referral made by Bill Pulte, Director of Federal Housing, to U.S. Attorney General Pam Bondi and U.S. Pardon Attorney Ed Martin last week. The referral accuses Cook of committing fraud related to properties in Ann Arbor, Michigan and Atlanta, Georgia.
In a post on his Truth Social account, Trump demanded, “Cook must resign, now!!” This call to action comes as the President exercises his legal right under Section 10 of the Federal Reserve Act, which allows for the removal of a Fed governor “for cause” by the President. However, the situation is complex; CNN reports that although a letter from Martin indicates Cook’s case “requires further examination,” she has not yet been officially charged with any crime, suggesting any removal could face significant legal hurdles.
Pulte has been vocal on social media, releasing a series of allegations against Cook. He claimed, “We have obtained a document Lisa Cook submitted to the U.S. Government while serving as Federal Reserve Governor. In it, on February 28, 2023, she represents to the U.S. Government that the Atlanta Property is her PERSONAL RESIDENCE.” Pulte further pointed out that Cook had previously listed that same property for rent on September 1, 2022, raising serious questions about her financial integrity.
In a response to Trump’s demands, Cook stated earlier this week, “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.” She expressed her commitment to addressing any legitimate inquiries regarding her financial history, stating that she is gathering accurate information to clarify the facts.
As of now, the Federal Reserve board consists of seven governors, with two being prior appointees of Trump. Following the resignation of former Fed Governor Adriana Kugler earlier this month, Trump has the opportunity to appoint someone to fill her seat. Should Trump succeed in ousting Cook or if she resigns, he could reshape the board to include a majority of governors aligned with his fiscal policies.
The implications of this unfolding situation are significant, not only for Cook but also for the broader economic landscape as the Federal Reserve navigates critical financial decisions. Analysts and politicians alike are closely monitoring the developments, which could have far-reaching consequences for U.S. monetary policy.
Stay tuned for further updates as this story develops.
