Fed Responds To Trump Decision Amid Allegations Against Fed Governor

President Donald Trump has never been shy about pulling levers of power that other presidents tiptoed around, and Monday was no exception. In a move that immediately rattled the financial establishment, Trump fired Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. With her removal, the calculus inside the Fed shifted overnight—especially with Chair Jerome Powell signaling that an interest rate cut could come as early as September. Cook had been a reliable “no” vote on easing rates, and her absence all but greases the skids.

Cook is, of course, fighting back. She has already filed suit to block her termination, and her defenders in the media are trying desperately to reframe what looks like a straightforward case of mortgage misrepresentation into some murky, misunderstood clerical quirk. Nowhere was this clearer than in CNN’s remarkable coverage, which bent over backward to avoid stating the obvious.

Here’s their spin: Cook took out mortgages for two properties, both of which were listed as her principal residence. However, it’s not known why she did so or if she did so intentionally.

BREAKING: Pres. Trump fires Federal Reserve Governor Lisa Cook pic.twitter.com/Yha0V3IE0C

— Breaking911 (@Breaking911) August 26, 2025

Read that again slowly. Two mortgages. Two properties. Both listed as “principal residence.” And CNN’s takeaway is: Who can really say?

This is what passes for journalism in 2025. It’s not even spin so much as a refusal to acknowledge reality. Mortgage fraud doesn’t suddenly vanish because the accused has a Ph.D. and a prestigious job title. If the average American tried to claim two homes as their “primary residence” simultaneously, there would be no shrugging about intent. The hammer would fall, and fast.

The irony is that this entire episode didn’t originate with some back-channel White House plot but from Bill Pulte—the homebuilding heir turned Federal Housing Finance Agency Director. Pulte has been agitating for Powell’s resignation and pressing the administration to take a harder look at the Fed’s composition. By referring Cook’s mortgage records to the Justice Department, he set off the chain of events that landed here: a vacancy on the Fed’s board and, potentially, a shift in U.S. monetary policy.

Flashback: Fired Federal Reserve Governor Lisa Cook said in 2020 that Donald Trump was “definitely a fascist.”

This is who was in charge of our nation’s monetary policypic.twitter.com/iWawkhF31d

— Greg Price (@greg_price11) August 26, 2025

Critics are howling about “independence” and “norms,” but let’s be honest: independence doesn’t mean immunity from accountability. The Fed is powerful, yes, but its governors are still public officials subject to the law. If there’s evidence of wrongdoing, pretending otherwise to maintain appearances does more to undermine the institution’s credibility than confronting it head-on.

The press, predictably, is circling the wagons—not to protect the integrity of the mortgage system or the credibility of the Fed, but to insulate a political ally from scrutiny. CNN’s “maybe she didn’t mean it” defense reads less like reporting than like courtroom closing arguments drafted by her attorneys.

This is why people don’t trust them. The facts are clear enough, but instead of reporting, we get linguistic gymnastics designed to blur them.

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