Trump Pressures Fed Governor Over Mortgage Claims Amid Policy Battle

President Donald Trump has escalated pressure on the Federal Reserve, calling for the resignation of Governor Lisa Cook following allegations of mortgage fraud. The controversy stems from a letter written by William Pulte, director of the U.S. Federal Housing Finance Agency, who claims Cook falsified bank documents and property records for two residences in 2021 to secure more favorable loan terms. Pulte submitted the matter to the Justice Department for investigation and has repeatedly criticized the Federal Reserve's leadership, including Chair Jerome Powell, for not lowering interest rates. Trump endorsed these allegations on his social media platform, demanding Cook resign immediately.

Cook, appointed to the Federal Reserve by President Joe Biden in 2022, holds a permanent voting seat on the central bank’s rate-setting committee. Her term is set to last until 2038. Before joining the Fed, she was a professor of economics at Michigan State University and is recognized as a trailblazer in the field. She is the first Black woman to serve on the Federal Reserve board in its over 100-year history. The Federal Reserve and the Justice Department have not yet responded to the allegations or Trump's demands.

Pulte’s letter, which he labeled as a "criminal referral," details that Cook submitted mortgage applications for a property in Ann Arbor, Michigan, and another in Atlanta, Georgia, within two weeks. Both applications declared the properties as her primary residences. However, according to Pulte, the Georgia property was later listed as a rental, suggesting potential misrepresentation. The allegations against Cook are part of a broader pattern of scrutiny over the mortgages of prominent Democratic figures. Pulte has similarly raised concerns about mortgages held by Senator Adam Schiff and New York Attorney General Letitia James.

Trump’s push for Cook’s resignation aligns with his broader campaign for the Federal Reserve to lower interest rates, a policy stance he has aggressively promoted since the start of his second term. Despite Trump's calls, the Federal Reserve has paused further rate cuts to assess the economic impact of Trump's tariffs. The recent pause has led to speculation over when the next rate cuts will occur. Financial markets are currently pricing in an 83% probability of a rate cut at the Federal Reserve’s September meeting, driven by signs of a slowing labor market.

Analysts suggest that Cook’s resignation would not necessarily halt the legal investigation into her mortgage applications. TD Cowen Washington Research Group analyst Jaret Seiberg noted that Cook has little incentive to resign before the next Fed meeting, as it would not end the probe. If she were to resign, it would create another opening for Trump to appoint a like-minded governor to the Federal Reserve’s board. Currently, only two of the seven seats are held by governors appointed solely by Democratic presidents, with Cook’s term expiring in 2038.

The pressure on the Federal Reserve has intensified with the ongoing Jackson Hole economic symposium, where Fed Chair Jerome Powell is expected to address the central bank's policy direction. Analysts predict that Powell will signal the likelihood of rate cuts in the second half of the year. Meanwhile, Trump’s administration continues to advocate for regulatory reforms to bolster the U.S. as a global leader in cryptocurrency, which could further influence the Fed’s policy considerations.

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[1] Trump says Fed Governor Lisa Cook 'must resign' after ... (https://www.nbcnews.com/business/economy/trump-lisa-cook-federal-reserve-feud-flares-up-rcna226049)

[2] Trump calls for resignation of Fed Governor Lisa Cook (https://www.npr.org/2025/08/20/nx-s1-5508276/trump-calls-for-resignation-of-fed-governor-in-latest-line-of-attack)

[3] Trump is pressuring yet another top Fed official to resign ... (https://www.cnn.com/2025/08/20/economy/trump-pushes-for-fed-governor-lisa-cook-resignation)