Trump Pressures Fed Governor Lisa Cook to Resign Amid Mortgage Fraud Allegations

President Donald Trump has intensified pressure on Federal Reserve Governor Lisa Cook to resign, citing allegations of mortgage fraud tied to her real estate dealings prior to joining the central bank.

The controversy stems from a criminal referral filed by Bill Pulte, director of the Federal Housing Finance Agency (FHFA), who claims Cook improperly declared two different homes as her primary residence in 2021, potentially securing more favorable loan terms.

While the allegations have not led to formal charges, Trump seized on the referral, demanding that Cook either step down voluntarily or face possible removal proceedings.

“Lisa Cook must resign,” Trump said in a statement posted on social media Wednesday. “The American people deserve honesty and transparency from those who sit on the Federal Reserve Board.”

Cook, who was appointed to the Fed by President Biden in 2022 and confirmed through a tie-breaking vote cast by then-Vice President Kamala Harris, has not publicly commented on the allegations. Her 14-year term is set to run until 2038.

Legal Hurdles Ahead

Legal experts note that the U.S. president cannot simply dismiss a Federal Reserve governor at will. Governors may only be removed “for cause,” and it remains unclear whether the mortgage-related accusations — which date back to before Cook assumed office — meet that legal threshold.

“This is uncharted territory,” said one former Fed counsel. “The courts would likely have to weigh in before any attempt to remove Governor Cook could succeed.”

Political and Policy Stakes

Trump’s move comes at a politically sensitive moment, as the White House has been vocal in its criticism of the Fed’s approach to interest rates. A vacancy on the Board could give Trump an opportunity to nominate a candidate more aligned with his calls for faster rate cuts.

Market analysts are closely watching the fallout. “If Cook were forced out, the balance of the Board could shift, potentially softening the Fed’s stance on inflation and monetary tightening,” said Marcus Holton, an economist at Liberty Partners.

For now, Cook remains in her position, but the mounting pressure underscores the increasingly fraught relationship between the executive branch and the traditionally independent central bank.

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