Trump Fires Fed Reserve Governor Lisa Cook Over Mortgage Fraud Allegations

U.S. President Donald Trump fired Federal Reserve Governor Lisa Cook, the first African-American woman in the role, citing allegations of mortgage fraud. The decision followed a criminal referral from Federal Housing Finance Agency Director William Pulte, appointed by Trump, who accused Cook of falsely claiming two mortgages as primary residences. Trump, in a letter posted on Truth Social, stated there was sufficient evidence of false statements, questioning Cook’s competence and trustworthiness as a financial regulator.

Cook, appointed by President Joe Biden in 2022, faced calls to resign on August 20 after Pulte’s claims surfaced. She denied the allegations, vowing to address them transparently. Pulte, in a Bloomberg Television interview, called the fraud “self-evident” but provided no public evidence. Cook’s 2024 financial disclosure lists three mortgages, two as personal residences, raising questions about loan terms.

The firing aligns with Trump’s broader efforts to influence the Federal Reserve, including pressure for rate cuts and reshaping its leadership. He has targeted Fed Chair Jerome Powell and elevated Governor Michelle Bowman as the top bank regulator, with Christopher Waller potentially in line to succeed Powell. Cook’s exit could accelerate these changes.

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The move also fits into Trump’s campaign against diversity, equity, and inclusion programs, with similar accusations leveled at figures like Senator Adam Schiff. Financial impropriety has been a recurring issue at the Fed, prompting tighter ethics rules in 2022 after controversies involving other officials.

Cook’s dismissal marks a significant escalation in Trump’s influence over the central bank, raising concerns about its independence amid ongoing economic challenges.