Donald Trump said Friday he will fire Federal Reserve Governor Lisa Cook if she does not resign from her position. This comes after days of mounting pressure from the Trump administration against Cook, following mortgage fraud allegations made by one of Trump’s top allies.
The threat marks a major step up in Trump’s ongoing battle with the Federal Reserve. For months, Trump has been pushing the central bank to cut interest rates and has repeatedly attacked Fed Chair Jerome Powell. The president’s latest move against Cook shows his willingness to target individual board members who stand in the way of his economic agenda.
According to The New York Times, Cook responded to the pressure by saying she has “no intention of being bullied” into stepping down from her position. The Federal Reserve governor, who was appointed by former President Joe Biden, made it clear she would not be pushed out because of what she called “questions raised in a tweet.”
Housing official makes serious allegations against Cook
The controversy began earlier this week when Bill Pulte, director of the Federal Housing Finance Agency, accused Cook of mortgage fraud. Pulte alleged that Cook claimed two different properties as her primary residence at the same time to get better loan terms. According to his letter to Attorney General Pam Bondi, Cook took out a mortgage on a Michigan property in June 2021, declaring it as her primary home. Just two weeks later, she took out another mortgage on a Georgia property, also claiming it as her primary residence.
Pulte, who has become one of the most vocal critics of the Federal Reserve under Trump, called for a criminal investigation into Cook’s mortgage applications. He claims Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud.” The housing official has been leading Trump’s attacks on the Fed and has repeatedly called for Powell to resign as well.
The Justice Department has reportedly indicated it is investigating the allegations, though no charges have been filed. Cook said she is gathering accurate information to answer any legitimate questions about her financial history. She noted that the mortgage application in question was from four years ago, before she joined the Federal Reserve. Despite the administration’s controversial tactics in targeting political opponents, Cook has vowed to remain in her position and fulfill her duties as a Fed governor.
Cook’s term runs until 2038, and she holds a permanent vote on the Federal Reserve’s rate-setting committee. As the first Black woman to serve on the Federal Reserve board in the central bank’s more than 100-year history, her removal would be significant. Legal experts say Fed governors can only be removed “for cause,” such as for breaking the law, not for policy disagreements. Any attempt by Trump to fire Cook would likely lead to a major legal battle and could roil financial markets. The situation reflects the broader tensions between Trump’s administration and various institutions as he pushes his political agenda forward.
Published: Aug 22, 2025 02:13 pm