President Donald Trump called for Federal Reserve Governor Lisa Cook to resign on Wednesday following allegations of mortgage fraud raised by Bill Pulte, head of the U.S. Federal Housing Finance Agency.
Pulte formally referred Cook to the Justice Department, claiming she misrepresented her principal residence on mortgage applications for two different properties in order to secure more favorable loan terms.
According to Pulte’s referral, Cook purchased a Michigan home on June 18, 2021, identifying it as her principal residence with the expectation she would occupy it within 60 days.
Less than two weeks later, however, she acquired a condominium in Atlanta, Georgia, also designating that property as her primary residence.
Mortgage lenders typically offer lower interest rates for owner-occupied homes compared to rental properties, making the designation financially advantageous.
Pulte alleged that by double-claiming residency, Cook engaged in “occupancy fraud.”
He further noted that the Atlanta condo was listed for rent by September 2022, yet Cook’s federal disclosures did not report rental income from the property, The Gateway Pundit reports.
Trump reacted strongly on Truth Social, demanding that Cook “resign, now!!” and questioning whether Federal Reserve Chair Jerome Powell was aware of the situation.
He accused the central bank of ignoring misconduct in its own leadership ranks.
Pulte echoed the demand for accountability, describing the alleged violations as “textbook fraud” and urging federal prosecutors to investigate.
Cook, a Biden appointee, joined the Fed’s governing board in 2022 and was reappointed in 2023 to a 14-year term that runs through 2038.
Her confirmation was contentious from the start, as Senate Republicans opposed her nomination, arguing she lacked extensive experience in monetary policy, according to the Associated Press.
Supporters, however, praised her academic background as a professor of economics at Michigan State University and her historic role as the first black woman on the Fed’s board.
The new allegations, however, threaten to further politicize her tenure.
The seven-member Federal Reserve board, alongside regional bank presidents, plays a decisive role in setting U.S. interest rates.
If Cook were forced out, Trump would be able to nominate a replacement, strengthening his influence over the Fed’s direction.
Trump has already hinted at deeper changes within the central bank, eyeing the possibility of reshaping its leadership beyond Cook.
Reports suggest he has taken particular interest in Governor Stephen Miran and has openly considered replacing Chair Jerome Powell once his term ends in 2026.
Powell would retain his seat as a voting member, but a Trump-leaning majority could shift the Fed toward steeper rate cuts in line with Trump’s push for easier credit conditions.
The clash comes as Trump ramps up criticism of the Fed, blasting its refusal to reduce rates as a drag on U.S. growth and a roadblock to the gains he says his tariffs are delivering.
Powell, in contrast, has defended holding rates steady as vital to controlling inflation and keeping the economy stable long-term.
That rift has fueled speculation over how far Trump might go in a second term to test the central bank’s independence.
Allegations of mortgage fraud tied to misrepresented residency have drawn comparisons to past cases where regulators treated such violations as serious breaches that distorted housing markets.
Critics argue that, if true, Cook’s alleged conduct would undermine the integrity expected of a Federal Reserve governor.
The Fed has so far declined to comment on either the accusations or Trump’s call for Cook to step down.
The escalating standoff highlights how political battles are increasingly spilling into the once-insulated walls of the central bank.
The post Trump Demands Fed Gov. Resign Amid Mortgage Fraud Allegations appeared first on Resist the Mainstream.
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Author: Gloriel Howard
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