Trump Calls for Fed's Lisa Cook to Resign Amid Mortgage Fraud Allegations

President Donald Trump has called for Federal Reserve Governor Lisa Cook to resign after Federal Housing Finance Agency Director Bill Pulte alleged that she may have committed mortgage fraud. Pulte has asked Attorney General Pam Bondi to investigate Cook. Seema Shah of Principal Asset Management commented on the news on Bloomberg Surveillance.

Federal Reserve Governor Lisa Cook is facing calls for her resignation and an investigation into potential mortgage fraud allegations, following a referral made by Federal Housing Finance Agency (FHFA) Director Bill Pulte. The move comes amid growing political tensions and increasing scrutiny of Democratic appointees by the Trump administration.

Pulte, a staunch ally of former President Donald Trump, has urged Attorney General Pam Bondi to investigate Cook, alleging that she may have falsified bank documents and property records to acquire more favorable loan terms. The referral, made on Aug. 15, 2025, [1] suggests that Cook may have committed mortgage fraud under the criminal statute. The referral includes copies of mortgage documents and an apparent rental listing for a property in Georgia.

Cook, who was nominated to the Fed by President Joe Biden and took office in 2022, is accused of taking a mortgage on a property in Ann Arbor, Michigan, and then taking another mortgage on a property in Georgia, both with stipulations that they would be her primary residences. However, Pulte alleges that she later listed the Georgia property for rental, suggesting that she misrepresented her circumstances.

The allegations against Cook are part of a broader effort by the Trump administration to increase legal scrutiny of Democratic figures and appointees. Trump has previously pursued mortgage fraud allegations against high-profile Democrats, including California Senator Adam Schiff and New York Attorney General Letitia James.

The referral against Cook also comes as Trump allies are pressuring the Federal Reserve to lower rates and Fed Chair Jerome Powell to resign before his term as chair expires in May. Trump has been critical of Powell and the Fed, arguing that the central bank should have started slashing rates months ago and criticizing the ongoing headquarters renovation project.

While no charges have been filed and it’s not clear whether Bondi will investigate, the referral has raised questions about the independence of the Federal Reserve and the political influence on monetary policy. Federal Reserve Board member Adriana Kugler has defended the independence of central banks, stating that it is the foundation for achieving good policies and economic outcomes. She also pointed out that an independent central bank has higher credibility in financial markets and among the public, stabilizing inflation expectations and achieving inflation stability. [2]

The investigation against Cook is not the only recent development in the Trump administration's attempts to influence the Federal Reserve. The surprise early resignation of former Fed Governor Adriana Kugler, another Biden pick, gives Trump an early opening to nominate someone to the central bank’s board and steer its monetary policy trajectory more toward his preferred path. He has named one of his economic aides, Stephen Miran, to fill the slot on an interim basis. [3]

References:
[1] https://www.bloomberg.com/news/articles/2025-08-20/trump-ally-calls-on-bondi-to-probe-fed-s-cook-over-mortgages
[2] https://www.moomoo.com/news/post/26980125/record-tr4cking-news-what-to-expect-in-the-week-ahead-powell-at-jackson
[3] https://www.rawstory.com/hijack/