President Donald Trump has called upon Federal Reserve governor Lisa Cook to resign after Federal Housing Finance Agency Director Bill Pulte asked the Justice Department to consider prosecuting her for mortgage fraud.
Pulte, who in his role at FHFA oversees the government-sponsored enterprises Fannie Mae and Freddie Mac, sent the criminal referral to Attorney General Pam Bondi last Friday. Pulte posted a copy of the letter to X on Wednesday morning. In response, Trump called on Cook to step aside.
“Cook must resign, now!!!” Trump said on social media.
The letter is yet another escalation by Pulte against Trump’s perceived enemies at the central bank. Pulte has increasingly emerged as the biggest attack dog in Trump’s orbit and has harshly criticized Fed Chairman Jerome Powell and others while serving as the government’s top housing regulator.
In the letter to Bondi, Pulte said it appears Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
“This has included falsifying residence statuses for an Ann Arbor, Michigan-based residence and an Atlanta, Georgia-based property in order to potentially secure lower interest rates and more favorable loan terms,” Pulte wrote.
While Pulte has gone after other officials over similar accusations, Cook is of interest because she is a voting member of the Fed board and one of the 12 people who control the direction of interest rates in the United States. Cook was nominated to the board by former President Joe Biden and worked in the Obama administration, in addition to being an academic economist.
Later on Wednesday, Cook indicated that she has no intention of stepping down from the Fed. Cook said she learned about the situation through media reports.
“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook said in a statement. “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”
Democrats on the House Financial Services Committee accused the Trump administration of lying about Cook and characterized the move as part of an effort to wrest control of the Fed.
“Donald Trump is making up blatant lies in an effort to oust the first Black woman to serve on the Federal Reserve Board, so he can replace her with another unqualified loyalist who will do his bidding,” committee Democrats said in a statement. “This is another attack on the Fed’s independence. We can’t let this happen.”
Trump and Pulte have repeatedly criticized Powell and the Fed for refusing to cut interest rates this year. Two members of the Federal Open Market Committee voted to lower interest rates at the last meeting: Christopher Waller and Michelle Bowman.
Another Fed governor who voted to hold interest rates steady, Adriana Kugler, recently and unexpectedly resigned, handing Trump an opening on the board. If Cook stepped aside, Trump would have another opportunity to nominate a replacement.
In addition to Trump, Sen. Bernie Moreno (R-OH) called upon Cook to resign. Moreno hinted at the dynamic of the Fed board in a Monday post on X.
“Lisa Cook is cooked and should immediately resign her position at the Federal Reserve,” the senator said. “For the benefit of our great Country, I’m hopeful we can get a two for one special and Jay Powell can join her in packing it up.”
THE FED OFFICIAL WHO CORRECTLY PREDICTED INFLATION COULD FALL WITHOUT A RECESSION
Pulte has made a name for himself in the administration by using his massive social media following to attack Powell and others. The FHFA director has also targeted some other high-profile Trump critics, most notably Sen. Adam Schiff (D-CA) and New York Attorney General Letitia James.
