‘Must Resign Now’: Trump Asks Fed Governor Lisa Cook On Truth Social

Washington: President Donald Trump has demanded the resignation of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud made by one of his allies, US Federal Housing Finance Agency Director Bill Pulte. Trump also reportedly stated that he is considering firing Cook, although the extent of his authority to do so is unclear.

The allegations revolve around Cook's mortgage applications, where she allegedly claimed a condo in Atlanta as her primary residence while also declaring a home in Michigan as her primary residence. Pulte claims Cook took out loans on both properties, possibly benefiting from more favourable loan terms reserved for primary residences. Cook's financial disclosure documents show three mortgages taken out in 2021, including a 15-year loan on an investment property and two loans for personal residences.

Controversy Surrounding Cook's Mortgages

Pulte's allegations have stirred controversy, with Trump amplifying the claims on his social media platform. "Cook must resign, now!!!" Trump wrote, fueling speculation about the implications for the Federal Reserve's independence. The justice department has confirmed it is taking the matter seriously, although proving criminal liability may be challenging.

According to experts, mortgage fraud typically involves deceiving banks to secure better loan terms. If the lender is aware of all relevant facts, it can be difficult to build a strong case. The complication was outlined by comparisons to a civil fraud case brought by New York State Attorney General Letitia James against Trump, which resulted in a $355 million judgment.

Fed Board Composition And Trump's Influence

The controversy comes as US President Donald Trump seeks to exert more influence over the Federal Reserve. Lisa Cook is one of three Biden appointees to the Fed whose terms extend beyond Trump's current term, complicating the president's efforts to appoint a majority of the seven-member board of governors. Two current board members, Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman, were appointed by Trump.

Waller has previously expressed support for gradually easing interest rates, citing concerns about the labor market and inflation. Donald Trump's repeated criticism of the Fed's interest rate policies has raised questions about the central bank's independence and potential implications for the economy.