Nationwide — Federal Reserve Governor Lisa Cook rejected Donald Trump’s demand that she should resign over mortgage fraud allegations. As the first Black woman to serve on the Fed board, she said she will not be pressured to step down and is preparing to address the claims.
According to Newsweek, Trump’s call came after Federal Housing Finance Authority director William Pulte sent a referral to Attorney General Pam Bondi, accusing Cook of listing multiple homes in Michigan and Georgia as primary residences on mortgage applications.
Cook, appointed to the Fed by President Joe Biden in 2022 and reappointed in 2023 for a 14-year term, said she is taking the accusations seriously. She explained that she is gathering records to provide accurate answers, adding, “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.”
The dispute adds to Trump’s ongoing battles with the Federal Reserve. He has repeatedly urged the central bank to cut interest rates and has often attacked Fed Chair Jerome Powell, calling him “too late Powell” and a “numbskull.” While Trump has floated the idea of firing Powell before his term ends in 2026, he has said it is “unlikely.”
Analysts caution that efforts to remove Cook or Powell could harm the Fed’s independence and credibility, sparking market concerns. If vacancies opened, Trump would have the chance to strengthen his influence over the central bank by appointing replacements.
Pulte alleged that Cook falsified bank documents to secure favorable loan terms. So far, neither the Justice Department nor Bondi has announced whether they will investigate the claim.
Cook is not the only Democrat facing mortgage scrutiny under Trump’s administration. California Senator Adam Schiff and New York Attorney General Letitia James are also under review for similar allegations.
Despite the mounting pressure, Cook emphasized her commitment to transparency. “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,” she said.